Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
New 2.9 billion brings CU SIP to almost 8 billion
ALEXANDRIA, Va. (2/16/09)--The National Credit Union Administration Friday announced it provided $2.9 billion this month to credit unions participating in the Credit Union System Investment Program (CU SIP), an NCUA initiative designed to add liquidity to the corporate credit union system. This follows the initial Jan. 9 issue when the NCUA’s Central Liquidity Facility (CLF) funded approximately $4.9 billion in advances under CU SIP. Under SIP, the CLF makes a secured, one year advance to the natural person credit union. The credit union must concurrently invest the amount of the advance in a fixed-rate, matched term, guaranteed note that is issued by the participating corporate. The SIP notes are guaranteed by the National Credit Union Share Insurance Fund. Corporate credit unions use the funds to retire borrowings from outside the credit union system. The CLF determines which corporates will issue the SIP notes to which credit unions. NCUA Chairman Michael Fryzel said in a release, “Stabilized liquidity is one of the cornerstones of NCUA’s approach to dealing with the difficulties in the corporate system, and I encourage credit unions to utilize this important tool as we move forward together.” The Credit Union National Association’s Corporate Credit Union Task Force has been investigating alternative funding approaches to reduce the costs to credit unions of funding the NCUA's corporate stabilization program. Included among them is a plan to seek modifications to the CU SIP program to make it more attractive to credit unions.


RSS print
News Now LiveWire
Economic activity slowed in June, according to the #Chicago Fed's national activity index, released today #Market http://t.co/1pN6peM8my
13 hours ago
Money burns a hole in workers' pockets after payday, despite best intentions via @WSJeconomy http://t.co/A9SNiUdf9v
14 hours ago
"SAR Stats," new from #FinCEN, focuses on #bitcoin. See #NewsNow http://t.co/vS7iTwY2SW
15 hours ago
.@CFPB now accepts consumer complaints on prepaid cards, debt settlement services, credit repair services, and pawn and title loans.
16 hours ago
.@WellsFargo to process transactions in order received, not high to low http://t.co/g0jWJoegoJ
16 hours ago