Minister of Finance to Provide Temporary Transitional Support Under the Federal Credit Union Framework
January 24, 2014 – Ottawa, Ontario – Department of Finance
Finance Minister Jim Flaherty today announced the Government’s intention to enhance the federal credit union framework by providing temporary transitional support to eligible provincial credit unions that have provincial acceptance to move to the federal framework.
To help credit unions move from provincial regulation to federal standards, the Government of Canada will provide temporary transitional support by offering extended deposit insurance and a short-term funding facility, as well as an extended transition period to comply with federal insurance networking rules. The Department of Finance will work with the credit union industry to develop terms and conditions for these support measures as the continuance process advances.
Minister Flaherty has written a letter to the Credit Union Central of Canada, the national trade association for credit unions, to inform it of the temporary transitional support under the federal credit union framework, and to invite it to participate in the consultation process.
- The federal credit union framework, which came into force in 2012, is designed to promote competition, efficiency, innovation and stability by giving credit unions the option of transferring to federal regulation and operating seamlessly across provincial borders.
- As part of the feedback process, a number of credit unions highlighted challenges in moving from provincial regulation to federal standards, stemming from differences in federal and provincial deposit insurance coverage, as well as insurance networking rules.
“Canada’s financial system is widely considered by many to be one of the most resilient and best regulated in the world. Credit unions represent an important part of the financial sector in Canada, with almost one third of Canadians belonging to either a credit union or caisse populaire.”
“The enhancements being made to the federal credit union framework will make it easier for eligible provincial credit unions to transition into the federal system, and give them the opportunity to offer their innovative products and services to Canadians nationwide.”
- Jim Flaherty, Minister of Finance
- Letter to the Credit Union Central of Canada
- Backgrounder: Temporary Transitional Support Under the Federal Credit Union Framework
- Harper Government Provides Greater Flexibility for Credit Unions Nationwide, Giving Consumers More Choice – December 21, 2012
Office of the Minister of Finance
Department of Finance