Agencies update guidance on liquidity risks and contingency planning
ALEXANDRIA, VA (July 31, 2023) — Federal financial institution regulatory agencies today updated their existing guidance on liquidity risks and contingency planning. The updated guidance highlights that depository institutions should regularly evaluate and update their contingency funding plans.
The updated guidance encourages depository institutions to incorporate the discount window as part of their contingency funding plans. Consistent with other contingency funding sources, the guidance reinforces the supervisory expectation that if the discount window is part of a depository institution’s contingency funding plans, the depository institution should establish and maintain operational readiness to use the discount window, which includes conducting periodic transactions.
The discount window can readily provide funding for depository institutions and the Central Liquidity Facility can do so for credit unions. The guidance applies to all depository institutions supervised by the agencies.
Attachment: Addendum to the Interagency Policy Statement on Funding and Liquidity Risk Management: Importance of Contingency Funding Plans
| Agency |
Contact |
Phone |
| FDIC |
LaJuan Williams-Young |
202.898.3876 |
| Federal Reserve |
Eric Kollig |
202.452.2955 |
| NCUA |
Joseph Adamoli |
703.518.6572 |
| OCC |
Stephanie Collins |
202.649.6870 |
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.
