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Interbank Contingent Liquidity Funding Exchange is a new contingency funding tool available to FDIC insured community banks with less that $1 billion in assets.
Every bank is required to have a contingency funding plan in place to manage the liquidity needs of the institution. TCG has developed a product that will enhance your ability to maintain a robust CFP.
Some institutions have underestimated the difficulty of obtaining or retaining funding sources during times of financial stress. Secured and unsecured lines of credit, advances, and repurchase agreements periodically get reviewed and terms may be substantially changed, if not cancelled, in times when your institution needs it the most. This makes these arrangements expensive, unreliable, and a waste of financial resources.
Membership in the Interbank Contingent Liquidity Funding Exchange allows your bank to receive from another FDIC insured institution an irrevocable commitment to place, upon your request, a $250k deposit in your bank with a one year maturity. In exchange, your institution issues the same commitment to the counter party.
Commitments will be for a minimum of $10MM and a maximum of $25MM. That exchange platform is expected to launch in early 2021 and will be available by login in at : contingentfunding.com