Motus Bank's days as a going concern appear numbered | Page 2 | motusbank | Discussion forum

Loonie said
I have been under the impression that Meridian doesn't want to take membership outside of Ontario at this time, and that Coast Capital doesn't want to go outside of BC or maybe the West generally.. CC has been federally incorporated for a while now. We thought they would then expand nationally, but they show no interest.
Clients could be given a choice. Those who value the CDIC insurance and want a "bank" would likely choose CC, but there is no mention of having a choice in #1 above.  

You'd think that, eh!? Most of us certainly did. Coast Capital Savings seems have wanted to incorporate federally as a means to expand into other provinces through acquisitions, but that hasn't happened. Innovation went national; First West is on the road to going national later this year or early next year. Servus and Connect First merged in Alberta to essentially create the first province with essentially one credit union only. Mergers are happening within each province.

RetirEd said
When BlueShore (formerly North Shore Credit Union) was merged into the recently merged Beem credit union at the end of 2024, we were offered the ability to withdraw our share deposits - which is really laborious normally. I took my shares into a GIC with a decent rate.

But I didn't have any GICs to try to cash in.  

Yeah, that's a little different. In this case, Coast Capital Savings is offering to assume the deposits. A better comparable example is RBC Royal Bank's acquisition of ResMor Trust Company's assets, specifically, the Ally deposits. On completion date, Ally HISA accounts closed and balances transferred to the first linked external account, mailed by cheque, or sent to the Bank of Canada's unclaimed deposits program early, as I recall. RBC then took over the lending products and assumed the GICs under the same terms as the Ally GICs to their maturity.

Loonie said
I'm not sure I follow you, Norman.
Are you saying that motus may not be able to fulfill its promise to transfer deposits to Meridian or CC, or that the deposits would lose insurance in doing so?  

I don't quite get part of what Norman is saying about CDIC not wanting to approve a transfer. From CDIC's perspective, the loans are shifting from federal regulation to provincial regulation, reducing the risk against Motus' liabilities (its deposits). Its deposits, hence, have only operational and cyber-security risk, not credit quality or liquidity risk. In short, it is a de-risking scenario (i.e., risk is being removed).

However, I don't believe Norman was saying that Meridian or Coast Capital Savings would not agree to assume the loans or deposits in certain circumstances, or that they would lose deposit insurance. I think he was just saying, later on in the thread, that Coast doesn't need to offer incentives in the form of 'bonus' rates or the ability to redeem GICs early (they could do that, but they don't have to and may not want to).