NCUA said there has been little signs of liquidity needs in the immediate aftermath of Hurricane Katrina but the federal regulator is standing ready with extra funding, if needed. Len Skiles, executive director of NCUA, said as of last week the agency had provided only one guarantee of funds.
"There does not appear to be any cash problems. Mississippi and Alabama (credit unions) are really working quite well, under the circumstances. We don't foresee any problems with them being able to serve their members. New Orleans is another story," said Skiles. NCUA has mobilized all of the means of adding liquidity to the system. "We anticipate providing some guarantees for the corporates' lines of credit and stand ready with 208 assistance (emergency loans through the National CU Share Insurance Fund)," Skiles said.
Emergency loans will also be available through the Central Liquidity Facility. "We will use all of those tools available to us."
