Q&A

Are My Deposits Insured?

Your money is safe and secure with your credit union. No member of a B.C. credit union has lost a cent of his or her deposits, since the Credit Union Deposit Insurance Corporation of British Columbia (CUDIC) was formed in 1958. Member deposits are backed by CUDIC, a provincial corporation administered by the Financial Institutions Commission, an agency of the B.C. Government.

On November 27, 2008, the Provincial legislature passed amendments to the Financial Institutions Act to provide unlimited deposit insurance protection on all deposits in British Columbia's credit unions, through the Credit Union Deposit Insurance Corporation (CUDIC). All money on deposit and money invested in non-equity shares of a BC credit union is 100% guaranteed, including foreign currencies and accrued interest, regardless of the length of the term to maturity.

Click here for more information on deposit insurance

Is My Credit Union Financially Stable?

Yes, we are secure and financially stable. We are closely regulated and follow conservative investing and lending practices and our balance sheet reflects our strong local focus.

Is The Provincial Credit Union System Stable?

Yes. The credit union system has a long history of prudent financial management and conservative practices. It is closely regulated by the provincial government. Both the provincial government and the federal government regulate our central credit union. Credit unions follow a disciplined approach to fiscal management during upswings and downswings in the economy. Ensuring the safety of members’ deposits is always a top priority. Our focus is on our communities and helping our members.

Credit unions have not been involved in sub-prime lending that has caused problems in the U.S.

How Stable Is The Canadian Banking System?

Canada has one of the most, if not the most, financially stable banking systems in the world. The Canada Deposit Insurance Corporation (CDIC) has said that the Canadian financial system is in good shape and that Canada’s banks are well capitalized.

Credit unions have a solid deposit base, a sound portfolio of loans in their local communities and prudent capitalization levels. Credit unions are regulated financial institutions with excellent liquidity support at the local, provincial and national levels that are designed to withstand financial market turbulence.

Are Credit Unions Funded Differently Than Banks?

Yes, credit unions are primarily funded by member deposits, not borrowings, as many U.S. banks are.

What Is Happening To The Markets And Economy?

Chief Economist Helmut Pastrick of Central 1 Credit Union says that the crisis we are facing is a financial crisis, not an economic one. The problem is largely confined to the financial and credit markets and the impact on jobs and the economy is expected to be less. We may face an economic slowdown, but not a dramatic downturn.

Investment Questions

The following questions are specific to each person’s situation and should be discussed on an individual basis with your credit union financial advisor. Contact a wealth management advisor for an appointment.

  • Should I be getting out of my mutual funds? Should I stop contributing?
  • I am concerned about the present market volatility. What should I do?
  • I am on a fixed income and I am concerned that the drop in the value of my portfolio will have a long lasting effect on me. What should I do?
  • I have spare cash in my cash account. Is this a good time to buy?