SURREY, BC, July 10, 2012 /CNW/ - Coast Capital Savings says Minister of Finance Jim Flaherty's announcement of a proposed regulatory framework for federally incorporated credit unions marks a significant and positive development for cooperative financial institutions in Canada.
Tracy Redies, president and CEO of Canada's second largest credit union, said Coast Capital has been a strong and long-time advocate of federal legislation to enable credit unions to expand beyond their provincial boundaries. She applauded the federal government for continuing to deliver on its commitment to create a legal option for credit unions that may wish to expand nationally, as announced in the 2010 budget.
"The opportunity for interested credit unions to grow beyond provincial boundaries will benefit all Canadians by increasing consumer banking choices and strengthening the entire financial services industry," Redies said. "While we are still reviewing the framework, we are very pleased with the announcement of the proposed regulations because it is another step toward providing credit unions with a new option for growth and enhanced service to their members."
Redies said over the next few weeks, the credit union will review and assess the proposed regulations to determine its implications for Coast Capital and its members. This, she said, is part of an ongoing comprehensive evaluation of the federal credit union option, including the business benefits, risks and legal implications. She emphasized that Coast Capital will only pursue the federal credit union option if it makes sense for the business, members, employees and community partners and if it aligns with the credit union's growth principles.
"Coast Capital supports the federal credit union legislation in principle because we believe Canadians should have more choice when it comes to national banking alternatives," said Redies. "However, we are committed to open dialogue with our members, employees and community partners before making any move. Any decision we take will follow consultations with all these groups and a decision about whether we choose to pursue expansion under the federal credit union law will depend on their approval."
Coast Capital Savings Credit Union is Canada's second largest credit union with total assets under administration of $13.5 billion, 475,000 members and 50 branches in the Metro Vancouver, Fraser Valley, and Vancouver Island regions of British Columbia. Product innovations include Canada's first free chequing account from a full-service financial institution and the country's most flexible mortgage product, the You're the Boss™ Mortgage, which was named 2010 Mortgage of the Year by canadianmortgagetrends.com. Coast Capital offers one of Canada's 10 Most Admired Corporate Cultures™. It is a member of Canada's Best Managed Companies Platinum Club and an Imagine Canada Caring Company. To learn more, visit www.coastcapitalsavings.com.
For further information:
Divine Agodzo, manager, media relations, Coast Capital Savings