ALEXANDRIA, Va. (11/19/13)--In a new YouTube video, National Credit Union Administration staff provide details on the agency's new liquidity and contingency planning regulation, upcoming compliance deadlines, and additional resources the agency is providing for credit unions.
The video reflects an October NCUA Letter to Credit Unions on this issue, "Guidance on How to Comply with NCUA Regulation §741.12 Liquidity and Contingency Funding Plans" (13-CU-10). (See resource link for Oct. 28 News Now
story: NCUA Letters Detail Liquidity, E-Filing Regs For CUs.) The YouTube spot is hosted by NCUA Director of Examination and Insurance Larry Fazio and NCUA Division of Capital and Credit Markets Director J. Owen Cole, Jr.
Under the final rule, which was approved at last month's NCUA open board meeting:
Credit unions with less than $50 million in assets would need to maintain a basic written emergency liquidity policy, but would not be required to take further action;
Credit unions with assets of $50 million or more would be required to develop contingency funding plans describing how their credit union would address liquidity shortfalls in emergency situations; and
Credit unions with assets of $250 million or more would be required to have access to a backup federal liquidity source for emergency situations.
The final rule effective date is March 31.