Credit unions get green light to expand cross-country
TORONTO-- Finance Minister Jim Flaherty has announced draft regulatory changes that, when finalized, will allow credit unions and caisses populaires to more easily expand beyond provincial boundaries.
Credit Union Central of Canada, the national trade association for the Canadian credit union system, welcomes the proposed regulations. “Credit Union Central of Canada supports the availability of a federal option for credit unions,” said Gary Rogers, vice president, Financial Policy, Credit Union Central of Canada. “We welcomed the release of the draft regulations as another step toward enabling credit unions to choose a new option to address growth opportunities and enhance service to their members. We cannot say that any credit unions will move immediately to re-establish themselves as federal credit unions once the legislation is in place. We do know, however, that the federal credit union option is viewed by some credit unions as a strategic option for the future.”
Currently, credit unions hold a 30- to 40 percent share of retail banking in Manitoba and Saskatchewan and 20 percent in B.C. In Ontario, credit unions capture just 12 percent of the market share.