Over the last two months the BC regulated credit union system got 30% smaller.
Consolidation
The First West Quest, and What Remains
The launch of the Tru Cooperative Bank will leave the BC regulated credit union sector much smaller and weaker.
Market Discipline, Credit Unions & the Minister
Modern ‘prudential regulation’ of banks presumes there is ‘effective market discipline’; this includes an engaged ownership. But credit union owners are not engaged. By default, government is obliged to intervene.
Disengagement – the absent owners
As BC credit unions consolidate members disengage, creating an ownership vacuum. This is a structural weakness that is ignored in the current BCFSA review of governance risks. It is time to face the ‘ownership risk’ head on.
Mergers – a false debate
The Great Canadian Credit Union Merger Debate fell short. No counter arguments were made and there was no elaboration on the future of a ‘sector’ or a ‘social movement’.
Credit Unions Consolidate, like lemmings…
Rapid consolidation in the BC credit union sector will create a small number of very large credit unions, and new problems.
Evading Accountability: AGM reporting
Credit union financial reporting standards in BC are too low and out of date. The standard should be higher in light of consolidation and technological change.
Credit Union 2023 ‘Blues’
Central1 Power Struggle
The C1 proposals serve the interests of larger credit unions, in the way risk would be redistributed and the way political power concentrated.
Concentration Risk
BCFSA is not targeting the risks, risks that are highly concentrated in the very large institutions, and community-based credit unions may be the collateral damage.