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Email this9:29 am
May 15, 2007
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New legislative framework now allows for national Canadian credit unions:
http://www.newswire.ca/en/stor.....dit-unions
9:44 am
November 21, 2012
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I'm pretty sure that if they want to expand beyond their province then they must adopt CDIC insurance with it's puny 100K limit. I hope the Manitoba credit unions just stay put.
7:41 am
December 23, 2011
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Jim said
I'm pretty sure that if they want to expand beyond their province then they must adopt CDIC insurance with it's puny 100K limit. I hope the Manitoba credit unions just stay put.
Jim keep in mind that BC credit unions have a no limit of insurance which is far better coverage than CDIC ... http://shannonrupp.com/content.....re-deposit .. so the question is ... will this BC Govt Corporation want to cover non BC residents.
From my experiences I have an investment adviser in BC and moved to AB for a few years. I had some investments in a BC credit union and nothing was mentioned that I could not. Although I did use one of my daughters' BC addresses for this account. I also kept all of my banking (was not using credit unions at the time other than through my planner) in place in BC with an AB address (and did not have a AB bank account) with out issue.
This sounds like good news although there may be some wrinkles to be ironed out when a non resident applies for an account....I would think. Before I started dealing with Accelerate and Outlook I had contacted Steinbach Credit Union and they had no problems dealing with a BC resident and they mentioned that they had world wide customers. Maybe I am wrong here....but I assumed that when the few Manitoba Credit Unions created their spin off virtual banks that they had circumvented the no out of province customers while maintaining Deposit Guarantee Corporation of Manitoba coverage.
How will this impact on the existence of Maxa, Hubert, Accelerate and the sort .... as they are all off shoots of a Manitoba Credit Union.
Any comments would greatly be appreciated.
5:25 pm
December 12, 2009
Online
Jim is correct. My understanding is that not all credit unions can operate nationally and accept account openings from residents outside their jurisdiction unless they choose to incorporate nationally under the new federal legislative framework. Essentially, I would assume they can apply to the Minister of Finance to continue/transition their operations as, let's say, a B.C. incorporated credit union but as a Canadian incorporated credit union. So, now, once approved, that credit union would be regulated by the federal banking regulators including OSFI, FCAC, OBSI, CDIC, Minister of Finance, etc., and deposit insurance would now be through CDIC instead or provincial deposit insurance corporations.
It's going to get even more confusing, though, as you'll see some credit unions that will find it advantageous to move to a national systems infrastructure, interprovincial branch network and members from coast to coast to coast (as the saying goes) that will choose to incorporate nationally but you'll also see some provincially incorporated credit unions accepting out-of-province members either through themselves or through online banking divisions and/or wholly-owned banking subsidiaries, such as the Manitoba credit unions. Confused yet?
Cheers,
Doug
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