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.
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.
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’.
Counting votes at the Vancity AGM proved to be a challenge. But that may be only one of many concerns.
A successful democracy requires vigilance. I wrote an opinion piece that appears online in today’s Vancouver Sun. I encourage you to read it. What follows is a quick overview. Naomi Klein observed that people will take advantage of a crisis to gain an advantage, in her book The Shock Doctrine,. The impending trade war threatened […]
Credit union financial reporting standards in BC are too low and out of date.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.
CSCU proposes a new hybrid capital structure, with almost no rationale and with no discussion of the pros and cons.
The C1 proposals serve the interests of larger credit unions, in the way risk would be redistributed and the way political power concentrated.
SaskCentral has sold its 84% interest in Concentra Bank to the Equitable Bank Group. Is it a good deal for the mid-size and smaller credit unions of Canada that been the primary clients of Concentra?
The BC Financial Services Authority (‘BCFSA’) has completed its first full year of operation and reported out. It is time for credit unions to assess how well the new regulatory regime works.