Canada has significant per-capita membership in credit unions, representing more than a third of the working-age population. [1] Credit union membership is largest in Quebec, where they are known as caisses populaires (people's banks), and in western Canada. [2]
Responsibility for the incorporation and regulation of credit unions resides primarily at the provincial and territorial level in Canada. Credit union legislation exists in every province of Canada but does not currently exist in the three northern territories. Credit unions and caisses populaires operate in every province of Canada. In Quebec, caisses populaires are required to be formally federated with the Caisses Populaires Desjardins.
Legislation was adopted under the federal Bank Act in 2012 to allow for the creation of federal credit unions. On July 1, 2016, the Caisse populaire acadienne ltée (later rebranded as UNI Financial Cooperation), with its 155,000 members, became the first federal credit union in Canada. [3] Coast Capital Savings announced the approval from OSFI to become the second federally regulated credit union in Canada beginning on November 1, 2018, the first federal credit union based in British Columbia. [4] Innovation Federal Credit Union became the first federal credit union headquartered in Saskatchewan on June 23, 2023.
| Credit Union | Founded | Federally Expanded |
|---|---|---|
| UNI Financial Cooperation | 1946 | 2016 |
| Coast Capital Savings | 1940 | 2018 |
| Innovation Federal Credit Union | 2007 | 2023 |
As of September 20, 2024, there were 392 credit unions or caisses populaires operating in Canada. [5]
As of September 20, 2024, there are 188 independently operated credit unions and caisses populaires operating in the nine provinces outside of Quebec holding combined consolidated assets of $312.3 billion CAD. [6]
The largest of these include Vancity, Coast Capital Savings, Meridian Credit Union, Servus Credit Union, First West Credit Union, Alterna Savings and Credit Union Limited, Access Credit Union, Steinbach Credit Union, Beem Credit Union, Desjardins Ontario Credit Union.
188 of these credit unions and caisses populaires were affiliated through a provincial or regional credit union central to Canadian Credit Union Association, the national trade association. These credit unions operated 1,630 branches across the country with over 6 million members and $312.3 billion in assets. [7]
Within Quebec there are 204 caisses that are formally federated with Desjardins as of September 2024. [8]
In 2024, the Desjardins caisses serve nearly 5.2 million members from 425 locations, with $371.4 billion in assets. [9]
Most credit unions in Canada are incorporated provincially and are insured by provincially established institutions.
Federally-incorporated credit unions are insured by the Canada Deposit Insurance Corporation. [11]
Credit unions have a history of innovation in Canadian financial services. Here are some of the products and services that credit unions were first to market: [12]
A credit union is a member-owned nonprofit cooperative financial institution. They may offer financial services equivalent to those of commercial banks, such as share accounts, share draft accounts, credit cards, credit, share term certificates, and online banking. Normally, only a member of a credit union may deposit or borrow money. In several African countries, credit unions are commonly referred to as SACCOs.
The Desjardins Group is a Canadian financial service cooperative and the largest federation of credit unions in North America. It was founded in 1900 in Lévis, Quebec by Alphonse Desjardins. While its legal headquarters remains in Lévis, most of the executive management, including the CEO, is based in Montreal.
Gabriel-Alphonse Desjardins, born in Levis, Canada East was the co-founder of the Caisses Populaires Desjardins, a forerunner of North American credit unions and community banks. For his contribution to the advancement of agriculture in the province of Quebec, he was posthumously inducted to the Agricultural Hall of Fame of Quebec in 1994.
The Canada Deposit Insurance Corporation is a Canadian federal Crown Corporation created by Parliament in 1967 to provide deposit insurance to depositors in Canadian commercial banks and savings institutions. CDIC insures Canadians' deposits held at Canadian banks up to C$100,000 in case of a bank failure. CDIC automatically insures many types of savings against the failure of a financial institution. However, the bank must be a CDIC member and not all savings are insured. CDIC is also Canada's resolution authority for banks, federally regulated credit unions, trust and loan companies as well as associations governed by the Cooperative Credit Associations Act that take deposits.
Deposit insurance or deposit protection is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of a financial system safety net that promotes financial stability.
Alterna Savings and Credit Union Limited, commonly called Alterna Savings, is a credit union based in Ottawa, Ontario, Canada. In addition to its credit union branches in Ontario, it also operates across Canada through its direct banking subsidiary Alterna Bank.
CS Alterna Bank, operating as Alterna Bank, is a Canadian direct bank and a wholly owned subsidiary of the Ontario-based credit union Alterna Savings. The bank offers chequing and high-interest savings accounts and mortgages.
A credit union league or credit union central is cooperative federation for credit unions.
Caisse populaire acadienne ltée, operating as UNI Financial Cooperation, is a Francophone credit union based in New Brunswick, Canada whose members are primarily Acadians. UNI's administrative headquarters are in Caraquet on the Acadian Peninsula.
Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world.
Banking in Canada is one of Canada's most important industries with several banks being among its largest and most profitable companies.
The Canadian Credit Union Association is the national trade association for credit unions in Canada. Founded in 1953, it rebranded to its current name in January 2016 to reflect its "evolving role as an association that is focused on growing a stronger... credit union industry."
The Province of Ontario Savings Office (POSO) was a financial institution established by the Government of Ontario, Canada in 1922 to provide a government-owned alternative to banks. The POSO was closed in 2003 when its assets were sold to the Quebec-based Desjardins Group cooperative of caisses populaires to form Desjardins Credit Union. In 2011, Desjardins Credit Unions in Ontario were transferred to Meridian Credit Union.
Desjardins Financial Security (DFS) is the life and health insurance arm of Desjardins Group, the leading financial institution in Quebec and the largest cooperative financial group in Canada. DFS registered a record-breaking revenue data in 2016, with a year-over-year increase of 12.5%. In terms of written premium, the industry ranks second in Quebec, and fifth in Canada.
Crown corporations are government organizations in Canada with a mixture of commercial and public-policy objectives. They are directly and wholly owned by the Crown.
The Financial Services Regulatory Authority of Ontario is a self-funding Crown agency which acts as the financial regulator for the Canadian province of Ontario. Established in 2016, FSRA officially succeeded its predecessor agencies – the Financial Services Commission of Ontario and the Deposit Insurance Corporation of Ontario – on June 8, 2019. The Financial Services Regulatory Authority of Ontario operates at arms-length from the Government of Ontario, and reports to the Legislative Assembly of Ontario through the Minister of Finance.
A routing number is the term for bank codes in Canada. Routing numbers consist of eight numerical digits with a dash between the fifth and sixth digit for paper financial documents encoded with magnetic ink character recognition and nine numerical digits without dashes for electronic funds transfers. Routing numbers are regulated by Payments Canada, formerly known as the Canadian Payments Association, to allow easy identification of the branch location and financial institution associated with an account.
Innovation Federal Credit Union is a Canadian credit union. It was formed on January 1, 2007, through the merger of Southwest Credit Union and BCU Financial. Innovation is the third largest credit union in Saskatchewan and the 21st largest credit union in Canada. Deposits are insured by the Canada Deposit Insurance Corporation (CDIC).
Once continued federally, FCUs become members of CDIC. As such, eligible deposits placed with an FCU enjoy CDIC deposit protection.