CREDIT UNIONS CONSIDERING NATIONAL SERVICE
By Adnews Staff
Canadian credit unions are looking for ways to deal with increased competition in the market. Credit Union Central of Canada has formed a task force to look at ways to restructure the credit union system, looking at what organizational model would best serve credit unions and credit union members, and to what extent financial services and delivery systems can be combined into one national organization. The task force, called the National Initiative System Task Force, includes representatives from the provincial credit union centrals, as well as individual credit unions. Restructuring options could include the creation of a national financial institution in which individual credit unions become branches. The committee could also recommend merging some, or all, of the provincial centrals. Credit unions are provincially regulated and most belong to two federally regulated umbrella groups: provincial credit union centrals and Credit Union Central of Canada. The purpose of the centrals is to provide liquidity to members. They also provide training and product development. Canada has 873 credit unions, which have $47 billion in assets and 4.2 million members.