Credit unions need liquidity flexibility, bank parity

CUNA wrote the Senate Banking, Housing, and Urban Affairs Committee in support of the credit union position on third party vendor authority, privately insured credit unions, deposit insurance reform, and the Central Liquidity Facility. The committee heard testimony from federal financial regulators Thursday, including NCUA Chairman Todd Harper.

“With more than 91% of credit union deposits insured, credit unions remain stable, safe, and secure during this time of uncertainty in the banking sector. The remaining nine percentage points represent deposits that exceed the federal maximum deposit insurance amount,” the letter reads. “The credit union difference makes us stronger by helping improve the financial well-being of Americans nationwide.”

CUNA added that America’s credit unions are well-capitalized with a 10.7% net worth-to-asset ratio and an 8.8% equity capital ratio. Credit unions’ loan-to-savings ratio stands at 82.1% and the liquidity ratio was 11.5% in February 2023, up from 11.1% in January.

The letter also notes:


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