Department of Finance Creates Open Banking Webpage

In an effort to be transparent and encourage feedback from stakeholders beyond the organizations participating in the four federal working groups (accreditation, liability, security, privacy), the Department of Finance has created an Open Banking Implementation website.

The site includes the terms of reference for each of the working groups, meeting schedules, topics of discussion, and outcomes.

The privacy and liability working groups are currently scheduled to meet next on July 25 and July 26, respectively.

CCUA has created a National credit union sector Open Banking Collaboration Committee. The terms of reference for the Committee can be found here. The Committee will be meeting every three weeks beginning on July 21 to move in tandem with the federal working groups.

If you have any questions, please contact Sabena Sandhu.

Hike the Hill at Home

We are pleased to launch our annual Hike the Hill at Home program for 2022! As we continue to return to the new normal it is important to re-connect with legislators in person and in your communities to share the work your credit union has done for your members. Coordinated and proactive meetings between you and your local legislators will help to reinforce the good work the sector is doing to help Canadians, while building relationships that your credit union can count on to help advance your local issues. This year we will be focusing on educating legislators on how credit unions help your community, as well as on the policy issue of tax fairness for credit unions. Our Hike the Hill at Home guide can be found here.

If you have any questions about the program, or if you would like assistance setting up a meeting with local MPs, please contact Rachel Barry.

Bank of Canada increases policy interest rate by full percentage point

On July 13, the Bank of Canada raised the policy interest rate by 100 basis points, or a full percentage point. This comes as inflation reached a nearly 40-year high of 8%. An policy rate of 2.5 per cent puts it in the long-run neutral range that according to the Bank neither stimulates nor restricts growth. The Bank expects to further raise interest rates in the future to cool demand and achieve the inflation target of 2%. How high the rate needs to go will depend on how the economy and inflation evolves, and on how consumers react to new monetary conditions.

The Bank also updated its forecasting of annual growth in economic activity, which will be around 3.5 per cent this year, 1.75 next year, and 2.5 in 2024. They estimate that we may see a few more months with elevated inflation around 8%, but expect it to decline later this year, ease to about 3% by the end of next year and return to the 2% target by the end of 2024.

Bill C-26 Overview

CCUA has prepared an overview of the federal government’s proposed cybersecurity legislation, Bill C-26, An Act respecting cyber security, amending the Telecommunications Act and making consequential amendments to the other Acts.

The Bill was tabled on June 14 and will apply to federally regulated businesses, including federal credit unions.  

The text of the proposed legislation can be found here.

In other cybersecurity news, OSFI has released its final Guideline B-13, which sets out how federally regulated FIs should manage technology and cyber risks. CCUA will analyze this and provide an update accordingly.

If you have any questions, please contact Sabena Sandhu and/or Gavin Karaiskos.

Bill C-27 Overview

On June 16, the federal government tabled Bill C-27, Digital Implementation Act, to update Canada’s federal privacy law. This will be done, in part, by repealing and replacing the personal information framework in the Personal Information Protection and Electronic Documents Act (PIPEDA).

CCUA has prepared an overview of the proposed legislation, as well as a clause-by-clause comparison of Bill C-27 and PIPEDA.

The text of the proposed legislation can be found here.

If you have any questions, please contact Sabena Sandhu and/or Gavin Karaiskos.

OSFI Climate Risk Management Consultation: We Want to Hear From You

The Office of the Superintendent of Financial Institutions (OSFI) released a draft version of Guideline B-15, which establishes expectations related to federally regulated financial institutions’ (FRFIs) management of climate-related risks.

As climate-related risks impact the entire financial services industry, CCUA is currently gathering input from all credit unions to draft a response on behalf of the sector. Discussion questions and further information can be found here.

Please share any responses with Indi Madar by July 29, 2022.

2021 Credit Union Financial Data Now Available

The 2021 credit union level financial data is now available in the CCUA Credit Union Benchmarking Tool. If you haven’t already done so, join over 560 credit union employees, who have already registered for the benchmarking tool. The tool is available to all credit unions free of charge and has no limit to the number of employees that can register. The tool helps users compare their credit unions’ key financial metrics, including balance sheet activity, profitability ratios, credit risk and capital adequacy with those of a user-selected group from across the country. You can register directly at https://benchmarking.ccua.com. If you have questions or would like more information, please contact Sandra Brizland.

Canada Learning Bond (CLB) for Adult Beneficiaries - Credit Union Outreach
 
CCUA is collaborating with the Education Savings Program department to help raise awareness and uptake of the Canada Learning Bond (CLB) benefit as over 148,000 young Canadians are/will be eligible to claim the CLB before they turn 21 years old. Credit union outreach is of the utmost importance since they are one of the only financial institutions in some communities across Canada. To support your credit union with outreach efforts, some promotional assets are available here.
 
The CLB is a sponsored program offered by the Government of Canada which looks to add funds to a Registered Education Savings Plan (RESP) to help children from low-income families pay for their post-secondary education. Recipients could receive up to $2,000 into an RESP.

For further information, please contact Indi Madar.