Manitoba is proposing amendments to the Credit Unions and Caisses Populaires Act to ensure credit unions and caisse populaires remain competitive, Family Services and Consumer Affairs Minister Gord Mackintosh announced.
“The financial services landscape continues to change and Manitoba credit unions and caisses populaires want the flexibility to react to new opportunities or pressures,” said Mackintosh. “We believe in their strengths and want to ensure they can continue their tradition of service to Manitobans.”
Changes to the act would allow for a single deposit-guarantee corporation. They would also clear the way for the planned consolidation of the caisse populaires system and protect the existing delivery of French-language services.
Proposed amendments would enable Credit Union Central of Manitoba to merge with other central credit union organizations to build strength and efficiency, subject to the approval of its members. Credit unions want the option to grow, diversify risk and have greater access to liquidity to ensure better service delivery, which a larger central organization would provide, said Mackintosh.
“The changes announced today respect the credit-union system’s past and current strengths while helping us prepare for the future,” said Garth Manness, CEO of Credit Union Central of Manitoba. “They make way for changes to the way credit unions receive services from their central organization while maintaining the principles and foundational strengths that anchor our system today. The act will continue to assist small, medium and large credit unions as they compete in the financial services sector and ensure Manitoba community-based institutions continue to play a prominent role.”
Proposed amendments would also provide credit unions and caisse populaires with:
• increased access to products, services and liquidity by allowing mergers of central credit union organizations across provinces;
• increased protection and greater diversification of risk by allowing a merger of the two guarantee corporations, Credit Union Deposit Guarantee Corporation and la Société d’assurance-dépôts des caisses populaires;
• increased opportunity and flexibility by making the act consistent with other jurisdictions; and
• increased flexibility and greater returns by allowing the purchase of loans from entities within and outside the province.
