Calling corporate liquidity "stable but tenuous," Office of Corporate Credit Unions Director Scott Hunt today requested support from member credit unions to increase shares deposited in the wholesale system.

Though U.S. Central FCU and Western Corporate FCU have retired most of their external borrowings, the two seized corporates still rely upon NCUA funding to manage liquidity, Hunt told subscribers of this afternoon's agency Webcast.

Combined, the two corporates owe $20 billion in the form of a $10 billion NCUSIF loan, U.S. Central's $1 billion NCUSIF capital note, $8.2 billion in SIP funds, and $450 million from the Central Liquidity Fund's HARP.

"The good news is we do have the cash to facilitate services and provide a measure of fluidity to meet the daily needs of members," Hunt said, "but the bad news is it's on the back of the NCUA."

The NCUA does not intend to indefinitely provide the funds, he said. Corporate loan to share ratios decreased during first quarter 2009 compared to first quarter 2008, despite an above average increase in shares deposited at natural person credit unions during the same period.

Hunt cautioned against investing outside the corporate system, saying if too much money flows out, it could force the corporates to sell securities in a distressed market.