Bill Overview
Title: A bill to amend the Federal Credit Union Act to provide a sunset for certain ways in which credit unions may be Agent members of the National Credit Union Administration Central Liquidity Facility.
Description: This bill temporarily provides the National Credit Union Administration Board with discretion in determining the amount of capital stock in the National Credit Union Administration Central Liquidity Facility required for a corporate credit union to become an agent member of the facility. The facility serves as a liquidity lender to member credit unions.
Sponsors: Sen. Padilla, Alex [D-CA]
Target Audience
Population: People using services from credit unions
Estimated Size: 128000000
- The primary entities impacted are credit unions, specifically those seeking to be agent members of the National Credit Union Administration Central Liquidity Facility.
- Credit unions serve a substantial portion of the US population, offering financial services to approximately 128 million members in the United States.
- The legislation affects the ability of corporate credit unions to access liquidity, which can influence their operations and services offered to their individual and business members.
- The Central Liquidity Facility (CLF) is designed to support credit unions during periods of financial stress, making it a critical component affecting financial stability for credit union members.
- As financial cooperatives, credit unions tend to serve specific membership populations including various socio-economic groups, military members, and specific industry workers.
Reasoning
- The intended target of the policy are credit unions themselves, which means people working within these organizations will be directly affected. Member individuals potentially impacted number in the millions, forming a key part of the U.S. financial fabric.
- However, direct effects on individual members will likely be indirect, focusing instead on credit unions' operational budgets through access to liquidity, potentially reflecting in member services or cost.
- Most people might remain unaffected in their day-to-day activities unless there is financial stress that impacts a credit union's ability to lend or offer services at previous rates.
- The impact on individual wellbeing scores for credit union members will likely remain stable in the short term as most changes occur at an organizational level without major individual financial shocks.
- Communities and individuals relying more heavily on credit unions, or where credit unions represent a larger segment of financial services, might perceive more impact, including lower-cost loan availability or service continuity assurances.
Simulated Interviews
Branch Manager at a Credit Union (Ohio)
Age: 54 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- This policy allows our credit union more flexibility, which is crucial, especially under unpredictable market conditions.
- A lower stock requirement may help us redirect some funds to enhancing member services or fortifying our financial products.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Software Engineer (California)
Age: 39 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 12/20
Statement of Opinion:
- As a credit union member, I value their low-interest loans and fees.
- If this policy ensures higher financial stability for my credit union, I'm all for it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Independent Contractor (Texas)
Age: 45 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 10/20
Statement of Opinion:
- Credit unions are already a more secure option with customer service that understands local business needs.
- This policy would likely secure smoother operations in fluctuating economic conditions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Teacher (New York)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 15/20
Statement of Opinion:
- As someone who relies on credit union stability for my financial security, any policy that could bolster this reliability is reassuring.
- I hope any saved costs are reinvested into better member benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Real Estate Agent (Florida)
Age: 31 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 8.0 years
Commonness: 8/20
Statement of Opinion:
- Stability and access to liquidity for credit unions might make them an even more attractive option for my clients.
- Policies like these are reassuring long-term for credit union members.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Retired (Illinois)
Age: 62 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- Knowing my retirement savings are better secured with financial stability, even through credit unions, is valuable.
- This policy might increase trust in these institutions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Small Business Owner (Georgia)
Age: 58 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Better liquidity options could mean more stability and better rates, which is crucial for small businesses.
- This policy should directly benefit my operation if it staves off financial volatility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
College Student (Oregon)
Age: 21 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 11/20
Statement of Opinion:
- Policies ensuring liquidity and stability in credit unions could help with tuition costs and future savings.
- Ensuring continued access to affordable loans might impact my financial future positively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Retired Military Veteran (Nevada)
Age: 70 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 4.0 years
Commonness: 13/20
Statement of Opinion:
- This policy seems practical, as I need dependable services for my military pension and daily banking needs.
- I expect this will shore up confidence among retired members like myself.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Nurse (Michigan)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 16/20
Statement of Opinion:
- By strengthening financial operations of my credit union, this policy might indirectly affect my savings’ security and children’s future.
- If our CU maintains low fees and rates thanks to this policy, it's positive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $500000 (Low: $250000, High: $1000000)
Year 2: $500000 (Low: $250000, High: $1000000)
Year 3: $500000 (Low: $250000, High: $1000000)
Year 5: $500000 (Low: $250000, High: $1000000)
Year 10: $500000 (Low: $250000, High: $1000000)
Year 100: $500000 (Low: $250000, High: $1000000)
Key Considerations
- This is a temporary measure designed to enhance liquidity for credit unions without requiring substantial fiscal changes.
- No new government spending programs or tax changes are proposed.
- The bill fosters financial resilience among credit unions, which could be important in periods of economic instability.