Federal Reserve Discount Window
The Federal Reserve operates the Discount Window and provides detailed information about eligibility, collateral requirements, and access. For more information, see the Federal Reserve Discount Window website.
The NCUA Central Liquidity Facility
The CLF is a member owned, NCUA managed contingent liquidity facility. As defined by NCUA regulations § 725.2(i), Liquidity needs, the CLF can provide:
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Short-term adjustment credit—Available to assist in meeting temporary requirements for funds or to cushion more persistent outflows of funds pending an orderly adjustment of credit union assets and liabilities
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Seasonal credit—Available for longer periods to assist in meeting seasonal needs for funds arising from a combination of expected patterns of movement in share and deposit accounts and loans
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Protracted adjustment credit—Available in the event of unusual or emergency circumstances of a longer-term nature resulting from national, regional, or local difficulties
Additional information about the CLF is available on the NCUA's public website.
CLF and Discount Window Characteristics:
| Central Liquidity Facility | Discount Window | |
|---|---|---|
| Uses | Emergency liquidity | Emergency liquidity |
| Regulatory Reference | NCUA regulation part 725, National Credit Union Administration Central Liquidity Facility | 12 CFR Part 201 |
| Membership Criteria | Approved membership application and members must subscribe to the capital stock of the CLF in an amount not less than one-half of one percent of the credit union’s paid-in and unimpaired capital and surplus. Half of the stock subscription must be paid-in to the CLF and the remaining half maintained in liquid assets on the credit unions balance sheet. Members receive a dividend on the paid in portion of their capital stock. | Members must file necessary lending agreements and corporate resolutions to obtain credit from a Federal Reserve Bank. |
| Criteria to Access Funds | A credit union must be creditworthy, have a valid liquidity need, and pledge unencumbered collateral to secure the borrowing at the time of the advance. | Must pre-pledge unencumbered, eligible collateral |
| Time to Access Funds | Depending on the size of the borrowing, up to 10 business days. | Same day |
| Borrowing Terms |
For Short-Term adjustment credit—up to 90 days; may be renewed. For seasonal and protracted adjustment credits—situationally dependent; up to 180 days or more. |
Up to 90 days; may be renewed |
| Pre-Pledged Collateral | Not required | Required |
| Collateral Valuation | CLF Collateral Margins table | Discount Window Collateral Margins table |
Last updated on March 15, 2024
