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Credit Unions and Caisses Populaires: Modernizing Regulation
Credit unions and caisses populaires are important in Ontario’s financial services sector. They play a vital role in providing deposit-taking services and making loan arrangements for members. They are often community-focused, in some cases providing financial services in communities where no other financial service providers exist.
FSCO works with the Deposit Insurance Corporation of Ontario (DICO) to regulate the sector. FSCO is responsible for regulatory enforcement of the market conduct provisions in the Credit Unions and Caisses Populaires Act, 1994 (CUCPA), including those related to consumer protection and governance. FSCO is also responsible for incorporating credit unions and reviewing offering statements.
Mergers and acquisitions have led to consolidation in this sector, resulting in fewer credit unions that are, in general, larger and more complex institutions. In the last five years, the market has also changed significantly. Credit unions face continued low interest rates, changing consumer technology needs, an aging membership base, more stringent regulatory requirements following the 2008 financial crisis, and aggressive competition from other financial institutions.
Ontario Credit Unions and Caisses Populaires: Membership 2008-2017, as at March 31
Description of Ontario credit unions and caisses populaires membership image
Ontario Credit Unions and Caisses Populaires and Total Assets 2008-2017, as at March 31
Description of Ontario credit unions and caisses populaires and total assets image
CREDIT UNION ASSETS UNDER MANAGEMENT
|Measure||As of March 31, 2017||As of March 31, 2016|
|Institutions with Assets over $50 million|| || |
|Assets||$52.2 billion||$46.8 billion|
|Institutions with assets under $50 million|| || |
|Assets||$747 million||$853 million|
|All Institutions|| || |
|Assets||$53.0 billion||$47.6 billion|
The November 2015 report of the review of the CUCPA recognized the challenges facing credit unions today. It acknowledged the sector’s need for a stronger regulatory framework to protect consumers and enable credit unions and caisses populaires to continue to meet the needs of their members.
FSCO provided input during the course of the review and advocated for a more robust consumer protection framework in the credit union sector, as well as increased business opportunities for credit unions.
FSCO and DICO continue to support the Ministry of Finance with the implementation of recommendations from the review. As a result of this collaborative work, a number of amendments to regulations under the CUCPA will come into effect on January 1, 2018. These amendments will help ensure the sector’s ability to compete in the financial services marketplace and serve their members. FSCO is working with the government to implement these amendments.
CREDIT UNIONS VS CAISSES POPULAIRES, AS OF MARCH 31, 2017
| ||Number||Assets Under Management ($ Billions)|
|Credit unions ||73||$46.0|
CREDIT UNION AND CAISSES POPULAIRES ENFORCEMENT ACTIONS
|Credit Unions/Caisses Populaires ||2016-17||2015-16|
|Letters of caution ||–||1|
|Letters of warning||2||42|
Credit Unions and Caisses Populaires Complaints 2012-13 to 2016-17
Description of Ontario credit unions and caisses populaires complaints image
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