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.
Rapid consolidation in the BC credit union sector will create a small number of very large credit unions, and new problems.
Credit union financial reporting standards in BC are too low and out of date.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.
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.
Low wages, predatory lending, and barriers to social mobility trap and disadvantage too many. Employers, governments, credit unions, retailers and others need to step up.
How do credit unions address their members’ loss of privacy? Huge datasets have been aggregated and turned into proprietary treasures – at Google, Facebook, Amazon, etc.. What is in the member’s best interest?
When managing risk & uncertainty, statistical models are no substitute for cautious, reasoned judgement.
The delivery system for Federal emergency support programs to business excludes most credits unions; Central 1 must step up.
