NCUA Media Advisory

House Appropriation Subcommittee Retains Maximum CLF Borrowing Authority   

June 25, 2009, Alexandria, VA –– A U.S House of Representatives Appropriation Subcommittee voted today to not place a cap and to maintain the Central Liquidity Facility (CLF) maximum, approximately $40 billion, borrowing authority through fiscal year 2010 to ensure NCUA has a source of funding available to meet liquidity needs.

“Today’s Subcommittee action suggests that Congress will continue to support NCUA’s authority regarding Central Liquidity Facility borrowing,” said NCUA Chairman Michael E. Fryzel. “I am optimistic that the cap will be removed for the second consecutive fiscal year and that Congress will provide NCUA with the necessary tools to maintain liquidity in the credit union system.”

The Subcommittee also approved $1 million in technical assistance for the Community Development Revolving Loan Fund. The measures must now be considered by the full Committee.

The National Credit Union Administration is the independent federal agency that regulates, charters and supervises federal credit unions.  NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 90 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.

- NCUA -