Is it high? I know that the collateral are the members’ savings. As a central bank we provide liquidity to commercial banks. But where do the credit unions go to when they need liquidity? Is it to commercial banks? Liquidity management is in my view the most critical issue with financial institutions whether you are a commercial bank, finance companies or credit unions.
Countries which are more exposed to vulnerable sectors offer direct grants, which support ﬁrm’s solvency, relatively more than public loans and guarantees, which provide liquidity. Also, countries with high initial corporate debt levels tend, on average, to use moratoria to a relatively large extent. This limits the increase in corporate leverage.