Are banks rigging the CDOR at the Bank of Canada? Several weeks ago an action was launched in New York that has potentially large consequences in Canada. The case has received little coverage outside the National Observer. The plaintiff alleges that Canada’s big banks colluded in setting the overnight rate at the Bank of Canada […]
Today the BC Ministry of Finance issued its consultation paper on changes to the Financial Institutions Act and the Credit Union Incorporation Act. The first 43 of the 68 recommendations relate to general issues and credit unions; the remainder being related to insurance and trusts. As a package, the government has responded well to BC […]
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 […]
I had an OpEd published Thursday in the Vancouver Sun. On the occasion of International Credit Union Day, it speaks to the declining number of traditional credit unions in BC. I reproduce the text here for those who may have missed it. ——————————————————————————————————————————- On International Credit Union Day, it’s worth remembering a few things about […]
As this is International Credit Union Day it may be the right time to speak up about the roots of our credit unions, and the ‘revolutionary’ role they play in the larger political economy. This is most evident in developing countries, such as Ghana, where one of our staff at CCEC recently visited. But it […]
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 […]
The recent proposals from the federal government to reduce certain tax advantages available to small business has met strident resistance from those who may have to pay more tax, and from others who just want to slag the Minister. The Minister has argued that the special provisions give too many benefits to the very wealthy. […]
For several months Central 1 has sought a concession from the BC government on the capital required for a commercial loan portfolio if the portfolio exceeds 30% of a credit union’s total assets. Currently, under the Capital Requirements Regulation, if the level of commercial lending breaches that threshold the excess amount requires twice the capital […]
More commentary has come out on the exceptional levels of household debt in Canada. These sometimes speak directly to the issue, such as described in the Borrowing Binge in the Vancouver Sun, or as a negative outlook provided by Moody’s when assessing the exposure of Canada’s banks. The latter makes explicit references the level of […]
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 […]