NCUA Central Liquidity Facility Enhancements Act

Mr. President, I rise to introduce the bipartisan NCUA Central Liquidity Facility Enhancements Act.

In December 2022, the temporary statutory enhancements that assisted the agent membership of corporate credit unions expired, leaving 3,322 smaller credit unions without access to the National Credit Union Administration's, NCUA, Central Liquidity Facility, CLF. This also contracted the facility's capacity by almost $10 billion.

This bill would grant the NCUA Board permanent statutory authority to determine the amount of capital stock in the CLF required for a corporate credit union to become a member of the facility, allowing more institutions to access this important backup liquidity source.

At a time of increased interest rate and liquidity risks for some credit unions, the CLF's role is increasingly important. This flexibility will ensure that the CLF can contain or avert any liquidity crises before they escalate and provide financial stability.

I thank Senator Cramer for introducing this legislation with me in the Senate. I hope all our colleagues will join us in supporting this bill to ensure that the CLF can appropriately and rapidly respond to economic events.

Mr. President, I rise to introduce the bipartisan NCUA Central Liquidity Facility Enhancements Act.

In December 2022, the temporary statutory enhancements that assisted the agent membership of corporate credit unions expired, leaving 3,322 smaller credit unions without access to the National Credit Union Administration's, NCUA, Central Liquidity Facility, CLF. This also contracted the facility's capacity by almost $10 billion.

This bill would grant the NCUA Board permanent statutory authority to determine the amount of capital stock in the CLF required for a corporate credit union to become a member of the facility, allowing more institutions to access this important backup liquidity source.

At a time of increased interest rate and liquidity risks for some credit unions, the CLF's role is increasingly important. This flexibility will ensure that the CLF can contain or avert any liquidity crises before they escalate and provide financial stability.

I thank Senator Cramer for introducing this legislation with me in the Senate. I hope all our colleagues will join us in supporting this bill to ensure that the CLF can appropriately and rapidly respond to economic events.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.