SOURCE: Canadian Credit Union Association

Canadian Credit Union Association

July 04, 2016 15:43 ET

CCUA Congratulates UNI Financial Cooperation on Becoming First Canadian Credit Union to Obtain a Federal Charter

TORONTO, ON --(Marketwired - July 04, 2016) - In 2012, the federal government announced the historic coming into force of the legislative framework that will allow for the establishment of federal credit unions. Today, UNI Financial Cooperation (UNI) announced that it will become the first Canadian credit union to take advantage of this opportunity to evolve into a more unified financial services provider.

"On behalf of Canada's credit unions, the Canadian Credit Union Association congratulates and supports the efforts of UNI Financial Cooperation," said Martha Durdin, president & CEO, Canadian Credit Union Association. "Becoming a federal credit union is an important strategic option and allows Canadian credit unions and caisses populaires to better align their capital and liquidity requirements with their risk, which result in efficiencies that benefit both members and local communities."

To take advantage of the federal credit union option, UNI merged into one institution with 51 branches around the province of New Brunswick. The credit union also marked an important milestone in its effort to become the first credit union in the country to obtain a federal charter by publishing a notice of the potential move in the Canada Gazette in March of last year. The Gazette notice also indicates that a vote in favour of federal incorporation would cause deposit insurance coverage to switch from the provincial to the federal deposit insurer.

"A federal credit union charter supports the growth and expansion of the Canadian credit union system, and helps make credit unions and caisses populaires more competitive with banks -- which is another important consideration," added Ms. Durdin.

CCUA, formerly branded Credit Union Central of Canada, represented credit union interests in working with the federal government and Department of Finance for more than two years to ensure the necessary steps would be taken to proclaim the federal credit union legislation into force.

About Canadian Credit Union Association
Canadian Credit Union Association (CCUA) is the national trade association for the Canadian credit union system. Canada's credit union system is a vital competitor in the financial services industry. CCUA represents 306 credit unions and caisses populaires (outside of Quebec) with more than $190.7 billion in assets and serving over 5.6 million members. For more information about Canada's credit unions visit www.ccua.com.

Contact Information

  • CCUA media contact:
    Janet Gibson Eichner
    Senior Manager, National Media & Communications
    Tel: (416) 232-3458
    Jgibson-eichner@ccua.com