The First West Quest, and What Remains

The First West Credit Union application for ‘Federal Continuance’ started in 2021 and came to fruition this week. First West is now Tru Cooperative Bank. The leadership of the credit union is celebrating this achievement. And the BCFSA will no longer have to grant extensions (see below) as the First West Quest proceeded.

But let us not forget the flip side of this project. The BC registered credit union sector is now much smaller. First West comprised @$15B in assets – @19% of the BC sector’s total @$80B. The provincially based system is suddenly much smaller.

And, Prospera Credit Union and Sunshine Coast Credit Union have both initiated applications to go ‘federal’. These applications are pursuant to a merger agreement with Coast Capital Savings (already a federal credit union). These two credit unions comprise another @$9B.

So soon the BC credit union system is likely to be >30% smaller than it was on January 1, 2026. The federal regulator, OSFI, has introduced a new ‘fast-track approval framework‘.

Vancity (currently @$32B in assets) will be more than 50% of the BC credit union system. Beem Credit Union (@$15B) will be @25% of the BC system. This concentration in two or three big entities poses potential problems for the regulator and deposit insurer. These changes also raise questions for the other @19 BC credit unions.

What is the value of a BC based banking sector? Does the provincial government simply step back and let these assets migrate to the federal level? The opportunity to ensure a future for the BC regulated ‘banking’ sector is fast closing.

There was once political will to have locally based credit unions. There was once a Premier (WAC Bennett) who championed the idea of a ‘Bank of BC’. Provincial governments welcomed credit unions as a challenge federal ‘banking’ jurisdiction. Today, the political and economic value of having a robust financial services sector within BC gets little debate.