The NCUA has posted a video to help federally insured creditunions comply with the final liquidity rule approved by the NCUABoard.

The video provides “insights into the purpose of the rule, whoshould follow the rule, compliance deadlines and additionalresources available to credit unions,” said an NCUA press releaseon Monday.

“NCUA previously issued a Letter toCredit Unions and other educational material withrecommended monthly steps needed to implement the rule,” therelease noted.

During their October meeting, board members unanimously approved a finalrule requiring all federally insured credit unions with more than$50 million in assets to adopt a contingency funding plan toaddress liquidity shortfalls during emergency situations.

FICUs with less than $50 million in assets must maintain a basicwritten policy that provides a credit union board-approvedframework for managing liquidity.

FICUs with more than $250 million in assets are required to haveaccess to a backup liquidity source for emergency situations fromthe NCUA's Central Liquidity Facility or the Federal Reserve'sdiscount window.

“One of the lessons we learned during the crisis is thatliquidity is vital. It's one of those things that tend to get takenfor granted. It's a little bit like air. You don't notice it untilit's not in the room and then you don't have very long to live sowe wanted to make sure that credit unions did sound liquidityplanning,” Larry Fazio, director of the Office of Examination andInsurance, said in the video.

Credit unions with questions about establishing access toemergency liquidity through the Central Liquidity Facility shouldcontact NCUA's CentralLiquidity Facility at [email protected], the agencysaid.