Co-operate or Merge – Mountain Style

Today’s announcement from seven credit unions in the BC interior is a shocker and clear evidence that smaller, up country credit unions are in a strategic bind.  The announcement says that formal talks are underway to explore the potential for a merger of the seven credit unions; Columbia Valley, Creston, East Kootenay, Grand Forks, Heritage, Kootenay […]

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Are Real Credit Unions FCU*d?

Real credit unions may have to reconsider their strategic options. History was made with the FICOM approval of the Coast Capital Saving application to be ‘continued’ as a Federal Credit Union (FCU). This action has the potential to totally restructure the BC credit union system.  While the commission did say that would consider the impact […]

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Regulatory Arbitrage

This is a new frontier for credit unions.  Regulatory Arbitrage is a big part of decision-making in large corporate entities as they choose where and how to do business.  The issue is the potential impact of requirements in certain legal jurisdictions; differing requirements drive corporate structures, governance practices, business strategies, investments, business location, staffing, and, […]

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Bankers` Long Game

warning

Consolidation and cartel building is the long term strategy of the Big Banks and it seems to go on without much alarm.  This is partly because of their patience and partly because other players are distracted by other things; technology, risk management, new capital rules, new liquidity monitoring tools,  mortgage insurance changes, etc..  But these […]

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Privatizing Credit Unions Incrementally

A headline in Enterprise Magazine provoked me.  The text talked about ‘… collectivizing Canada’s provincial centrals and CUSO’s’ when it was introducing an article on the restructuring and streamlining of second tier entities.  In fact the reverse is true.  In our quest for greater efficiencies (and scale), control is being concentrated in fewer and fewer […]

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What is Full and Fair?

FICOM is seeking input on the application from Coast Capital Savings to go federal.  One question posed by FICOM is, “Have members been provided with full and fair disclosure upon which to make their decision?”  Members of Coast Capital were asked to vote on a special resolution in November. “Full and fair” is not a […]

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