The Manitoba government is proposing amendments to the Credit Unions and Caisses Populaires Act that would strengthen the regulatory framework for Credit Union Central of Manitoba (CUCM).

“The financial services sector depends on public trust and confidence, which in turn is dependent on strong oversight and accountability framework,” said Finance Minister Scott Fielding. “We are working to establish an effective, practical system to oversee Credit Union Central of Manitoba to ensure Manitobans can continue to be confident their savings are safe in our prosperous credit unions and caisses populaires.”

Fielding noted the federal government withdrew its oversight services of provincial credit union centrals, leaving provincial governments with sole responsibility, so this legislation would fill that gap.

The proposed legislation would create a framework where:

  • the Deposit Guarantee Corporation of Manitoba (DGCM) will become the primary regulator of Credit Union Central of Manitoba, in addition to its current role as primary regulator of Manitoba’s credit unions and caisses populaires;
  • the Financial Institutions Regulation Branch of the Manitoba Financial Services Agency (Registrar) will oversee the Deposit Guarantee Corporation of Manitoba to ensure it fulfils its regulatory role and maintain responsibility for the system itself; and
  • the Manitoba government continues to be responsible for the Manitoba Financial Services Agency.

The minister noted the changes would ensure Manitoba’s regulatory framework meets national and international standards for the effective oversight of deposit-taking institutions, which includes monitoring solvency, liquidity, and safety and soundness.

As of Dec. 31, 2019, there were 25 credit unions and one caisse populaire in Manitoba, with 199 branch locations and a presence in 124 Manitoba communities. The sector’s assets were approximately $34.5 billion. The Deposit Guarantee Corporation of Manitoba provides protection for deposits held with these institutions.

The minister noted the Manitoba government developed the proposed legislative changes after reviewing other jurisdictions and best practices, and the new framework would resemble the SaskCentral model.