Shelter From The Storm

Shelter From The Financial Storm

Every day, new headlines broadcast the latest financial furor south of the border. While financial markets falter, Canada’s credit union system remains strong and calm, protected by well designed lending policies and sound regulatory structures. And although Canada’s economic outlook has dimmed, credit union members can rest assured their money is safe and their credit union is secure.

In B.C. alone, the credit union system saw assets grow to more than $42 billion by the end of 2007, up almost 60 percent in just the past five years. Deposit levels rose to $37 billion over the same period – an increase of over 50 percent. As well, the majority of our deposits come from local credit union members – not global capital markets – so our deposit base remains stable relative to other financial institutions in Canada, the U.S. and elsewhere.

Your credit union is committed to upholding and strengthening key policies that protect our members as the market swings and sways. We are sticking to our ‘no sub-prime mortgages’ policy, avoiding a major lending risk that is considered a chief cause of the current turmoil in the U.S. We are also continuing to make prudent loans to our members where we live, work and serve, helping keep our loan delinquency rates exceptionally low while supporting strong communities. As well, we’re maintaining high levels of capital reserves and liquidity, ensuring funds are available to meet our obligations to you, our depositors, at any time, including during periods of financial market upheaval.

The Credit Union Deposit Insurance Corporation of British Columbia (CUDIC), a provincial corporation administered by the Financial Institutions Commission, an agency of the B.C. government, provides deposit insurance for deposits at credit unions.

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