The failure of MEC is the result of a perverse definition of success, also taken up by credit unions.
MEC: The Success Delusion
Federal Credit Union
Brand Appropriation
The brand equity in the term ‘credit union’ is something provincial credit unions may want to protect.
Divided Allegiance (CCUA)
The Canadian Credit Union Association (CCUA) is conflicted. It says that it champions the successful future of (a) provincial credit unions and (b) federal credit unions, but it is not that simple. Unfortunately, a federal credit union growth strategy is based upon cannibalising the provincial credit union systems. In this last year the CCUA assumed […]
Go Local? Together….
Provincially chartered ‘local’ credit unions may want to create their own coordinating entity or federation to serve that set of interests.
A Digital Co-op Bank?
A month ago Central 1 published a short ‘white paper’ outlining their rationale for a ‘Digital Co-op Bank‘. The publication follows quickly on the Central 1 conference and AGM in May where virtually all the presentations related to a pending digital revolution in the financial services industry. New management at Central 1 is making a […]
Bifurcation?!
We have two different kinds of credit unions in Canada. This is ‘bifurcation’, as a consultant termed it. They have different profiles, different definitions of success, and different needs from second tier organizations. ‘Consolidation’ was the word that Martha Durdin, CEO of the Canadian Credit Union Association chose to feature in part of her report […]
Court Action Challenges Coast Capital Decision
A member of Coast Capital Savings is seeking a BC Supreme Court judicial review of Coast’s application to become a bank, specifically the provincial regulatory approval. Coast is pursuing plans to convert to a ‘federal credit union’ under the Bank Act (Canada), which is defined as a bank that is cooperatively owned. But to do […]
OSFI puts it to Provinces?
The recently announced B-20 Guideline from the Office of the Superintendent of Financial Institutions (OSFI) places new income qualifications on borrowers when obtaining a conventional mortgage at federally-regulated financial institutions (FRFI), mostly banks. Borrowers will have to prove they can afford a loan at @200bp above the quoted rate. The tougher debt servicing test is […]
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 […]
New Government Decisions
As the new Minister of Finance, Carole James, has several issues on her plate. The two simplest are getting attention, because they are listed in the direction given to her by the new premier. One is taxation, reversing the scheduled increase that faces large credit unions that no longer qualify as ‘small business’. And second, […]