Liquidity Policy

Develop a liquidity policy that addresses:

• Minimum cash levels;

• Concentration limits in loans, investments, fixed assets, and other areas;

• Approved liquidity sources such as a corporate credit union line of credit, correspondent banking relationships, Federal Home Loan Bank membership, NCUA’s Central Liquidity Facility, or Federal Reserve System; and

• Reporting and monitoring requirements.

Adequate liquidity management helps ensure management has sufficient funds available to meet demands for loans and share withdrawals. For information on liquidity and contingency funding plans, please see:

• NCUA regulations § 741.12, Liquidity and contingency funding plans

• The Examiner’s Guide

• Letter to Credit Unions 10-CU-14, Strengthening Funding and Liquidity Risk Management

• Letter to Credit Unions 13-CU-10, Guidance on How to Comply with NCUA Regulation §741.12 Liquidity and Contingency Funding Plans, .

Last updated on March 30, 2026