MSIC LIQUIDITY MSIC LIQUIDITY RESERVE FUND
THE PURPOSE OF THE LIQUIDITY RESERVE FUND (LRF) IS TO TRANSFER EXCESS LIQUIDITY THROUGHOUT THE MSIC COOPERATIVE. This is accomplished by attracting the excess liquidity of member credit unions through offering enhanced yields on their LRF deposits and holding these funds to meet the emergency liquidity needs of other member credit
LIQUIDITY RESERVE FUND BALANCE Fiscal Years Ending September 30 ($ in Millions)
$48.1
$37.5
$34.5
$25.9
$23.8
2018
2019
2020
2021
2022
unions. Currently Massachusetts state-chartered credit unions can participate in product offerings with a maturity of up to three years. Member institutions were financially healthy and did not have liquidity concerns during Fiscal Year 2022, so the need for the increased LRF level continued to decline. This enabled the LRF to decrease from the prior fiscal year by $13.7 million to end the current fiscal year at $23.8 million in deposits. The LRF remains a viable investment opportunity for MSIC members.
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