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The liquidity situation at corporate credit unions will be the NCUA’s focus when it examines possible changes in the Temporary Corporate Credit Union Liquidity Guarantee Program at its meeting on May 20.Agency officials declined to reveal the nature of changes being considered but said they will focus on longer term funding options. The program, which was created by the NCUA in January as part of its rescue plan for the corporates, guarantees all deposits in corporates.NCUA Director of Public and Congressional Affairs John McKechnie said the changes are needed to accommodate seasonal withdrawals from corporate credit unions during the spring and summer because of higher demand for consumer loans for purchases such as vacations following several months of increased savings in the beginning of the year.From May 2008 to December 2008, shares in the corporates declined from $113.3 billion to $80.8 billion.At the end of January, after the program was created, there were $86.3 billion in shares and $102 billion at the end of February.According to data compiled by CUNA, system wide the loan-to-savings ratio decreased from 79.9% in February to 78.8% in March. The liquidity ratio remained at 20%.–cmarx@cutimes.com

Peter Westerman

Credit Union Times

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