WASHINGTON — Credit unions will have more funds available to shore up any liquidity shortfall as a result of Congress' decision to increase the cap on the on the central liquidity facility.
The continuing resolution to fund the government contains a provision that eliminated the artificial cap on the facility's borrowing authority. Currently, it is capped at $1.5 billion (as it has been since 2001), and the change would allow the facility to lend money to credit unions based on the formula established in the Federal Credit Union Act, which is estimated to be $41.5 billion.
The NCUA and the credit union trade groups pushed hard for including the provision.
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