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%.–[email protected]

House Close on Mortgage Measure

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Peter Westerman

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.