TORONTO and VANCOUVER — In what might be a first for Canada, Credit Union Central of Ontario and Credit Union Central of British Columbia are in discussions to create a national lending and investment entity that would serve the entire country.
The proposed co-operative venture would create a combined liquidity pool offering greater lending and investment options, along with comprehensive payment and settlement services, and MemberDirect online services, the leading Internet banking platform for Canadian credit unions. Provincial centrals would continue to provide trade association services such as provincial government relations, marketing and communications, education and advisory services to credit unions within their respective provinces.
"Our member credit unions have asked us to take a national perspective to better position ourselves to thrive in a competitive financial services landscape," said Sheena Lucas, chair of Credit Union Central of Ontario. "This model would deliver size and scale in financial operations, while continuing to meet credit unions' unique regional needs."
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In October 2003, both centrals called off a merger of their wholesale financial services businesses primarily due to provincial restrictions. Together, they have combined assets of more than $6.5 billion and represent more than 200 credit unions that serve 2.7 million members.
"Canadian credit unions have a proud history of delivering innovative financial solutions to our members," said Daniel Burns, chairperson of Credit Union Central of British Columbia.
"This new framework and governance model builds on that legacy, ensuring that the credit union system remains competitive and relevant for generations of members to come."
The new entity would permit other provincial centrals and co-operative financial organizations to join, now or in the future. It is expected that next spring a final agreement will be presented to the shareholders of each organization for approval. Approval of federal and provincial regulators is also required. –[email protected]
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