Liquidity Reserve Fund

The MSIC Liquidity Reserve Fund (LRF) is a depository and lending facility created by a Massachusetts law which allows MSIC to help transfer excess liquidity throughout the MSIC collaborative system. First established in December 2014, the LRF now holds over $20 million in deposits from member credit unions and offers an important source of emergency liquidity for other credit union members. The LRF also provides MSIC with an important tool to provide enhanced yields to member participants, and gives MSIC added flexibility in managing its deposit insurance risk.

Currently, only Massachusetts state-chartered credit unions can participate in product offerings with a maturity of up to three years. 

The growing number of active members of the LRF understand the outstanding opportunity presented by the LRF as a means to add to their bottom lines by way of MSIC’s ability to offer competitive deposit interest rates.