Ontario Hears Recommendations to Help Credit Unions Better Serve MembersJanuary 31, 2020
Recommendations support vital role credit unions play in financial landscape
Guelph, ON — Ontario credit unions welcome MPP Stan Cho, Parliamentary Assistant to the Minister of Finance Rod Phillips and the Ontario government’s continued commitment to develop new principles‐based legislation to replace the outdated Credit Unions and Caisses Populaires Act, 1994.
As announced at a press conference at Meridian Credit Union in Guelph today, MPP Cho said: “The legislation governing credit unions is outdated,” adding “a new framework would help credit unions be more agile and competitive and better positioned to meet the needs of their members.” Modernizing financial services is part of the government’s plan to foster economic growth and a more competitive business environment in Ontario.
The Canadian Credit Union Association (CCUA) strongly supports the announcement. “Modernizing the Credit Unions and Caisses Populaires Act, 1994 is long overdue,” says Martha Durdin, President and CEO of CCUA. “We are pleased with the work the government is doing to increase the opportunities for credit unions to expand and serve their members.”
After releasing a consultation paper and engaging extensively with industry groups and the public, the recommendation is for a new, modern framework that would drive credit union competitiveness and innovation while enhancing customer experience by:
- Reducing regulatory burden
- Moving to a principles-based approach
- Expanding powers of credit unions to offer more services
- Improving governance and consumer protection
Credit unions are community-based financial institutions focused on personal, commercial and mortgage lending. They are financial cooperatives, owned by their members – the people who bank with them. Ontario’s credit unions and caisses populaires serve 1.6 million members, nearly 150,000 small businesses and employ 7,000 people.
About Canadian Credit Union Association
Canadian Credit Union Association is the national trade association for Canada’s credit unions and caisses populaires outside Quebec. These financial institutions offer a full-range of retail banking services to over 5.8 million Canadians (outside of Quebec). Collectively Canada’s 241 credit unions generate over $6.5 billion in economic impact, are leaders in small business lending, and have assets of $240 billion. To learn more about the credit union difference and find a credit union near you, visit www.ccua.com.