Annual Report 2016-2017

​Table of contents

 

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

Ontario Credit Unions and Membership 2008-2017, as at March 31

Description of Ontario credit unions and caisses populaires membership image [New Window]

 

 

Ontario Credit Unions and Caisses Populaires and Total Assets 2008-2017, as at March 31

Ontario Credit Unions and Total Assets 2008-2017, as at March 31 

Description of Ontario credit unions and caisses populaires and total assets image [New Window]

 

CREDIT UNION ASSETS UNDER MANAGEMENT

MeasureAs of March 31, 2017As of March 31, 2016
Institutions with Assets over $50 million  
Number6772
Assets$52.2 billion$46.8 billion
Membership 1,563,3851,531,045
Institutions with assets under $50 million  
Number3034
Assets$747 million$853 million
Membership 54,34468,427
All Institutions  
Number97106
Assets$53.0 billion$47.6 billion
Membership 1,617,7291,599,472

 

 

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

 NumberAssets Under Management ($ Billions)
Credit unions 73$46.0
Caisses populaires24$7.0

 

CREDIT UNION AND CAISSES POPULAIRES ENFORCEMENT ACTIONS

Credit Unions/Caisses Populaires 2016-172015-16
Letters of caution 1
Letters of warning242

 

 

Credit Unions and Caisses Populaires Complaints 2012-13 to 2016-17

Credit Unions and Caisses Populaires Complaints 2012-13 to 2016-17

Description of Ontario credit unions and caisses populaires complaints image [New Window]

 

Return to top