Go to:

December 2018
< Nov Jan >
Leaguer Email Subscription

You are not currently subscribed. Click Subscribe below to receive the Leaguer email.

Privately Insured CUs Eligible FHLB Members Starting July 5
Thursday, June 8, 2017 6:45 AM

Privately insured credit unions will be eligible to join the Federal Home Loan Bank (FHLB) starting July 5, as long as they meet certain requirements. The final rule, published in the Federal Register this week, was part of several regulatory relief items signed into law in December 2015 by then-President Barack Obama.

The Federal Home Loan Bank program serves as a low-cost source of liquidity for financial institutions. Federally insured depository institutions, including state- and federally chartered credit unions whose member accounts are insured by the National Credit Union Share Insurance Fund, have been eligible for FHLB membership since 1989.

Credit Union National Association strongly supported allowing privately insured credit unions the ability to access this additional source of liquidity.

Credit unions also saw a victory during the rulemaking stage with the elimination of a CUNA-opposed provision that would have required FHLB members to continually prove they are meeting minimum investment levels in the mortgage market. This provision was included in the proposed rule and eliminated from the final rule.