Ottawa Backs Credit Unions On ‘Banking’ Terminology


Toronto, ON, Feb. 28, 2018 (GLOBE NEWSWIRE) -- The Federal government will provide flexibility to credit unions on generic terms like ‘bank’ and ‘banking’. Finance Minister Bill Morneau announced the decision in the federal budget released yesterday.

The Canadian Credit Union Association (CCUA) on behalf of its members across Canada welcomes the decision. “We are obviously pleased with Minister Morneau’s announcement and we would like to thank him and the team at the Department of Finance.” said Martha Durdin, President and CEO, CCUA.

The CCUA would also like to acknowledge the advocacy efforts of MPs from all parties and the All Party Credit Union Caucus, a body formed last spring to facilitate communication between legislators and the credit union industry.

Last year, the CCUA had asked the federal government to review Bank Act restrictions around the use of these terms to find a reasonable solution so credit unions could continue to use terms like ‘online banking’.

Credit unions do not want to be confused with banks and proudly disclose the distinction to Canadians. However, Canadians have always associated the terms ‘bank’ and ‘banking’ with credit unions since the first credit union in the country opened doors over a century ago.

Ms. Durdin added, “Over 5.3 million Canadians use a credit union for their banking needs and that number is growing. Credit unions need to speak to Canadians in a language they have always understood. With this decision Minister Morneau is helping credit unions do what they do best, serve Canadians and contribute to driving forward Canada’s economy.”

Credit unions are the only bricks-and-mortar financial institutions in over 380 communities across Canada. They also drive local economic development by supporting small and medium-sized enterprises and contribute more than $6.5 billion annually to the Canadian economy.

About Canadian Credit Union Association (CCUA)
Canadian Credit Union Association is the national trade association of Canada’s credit unions and caisses populaires outside Quebec. These financial institutions offer a full-range of retail banking services to over 5.6 million Canadians. Collectively Canada’s 274 credit unions generate over $6.5 billion in economic impact, are leaders in small business lending and have assets of over $213 billion. For more information visit www.ccua.com

Media Contact:
SACHIN DESHPANDE
sdeshpande@ccua.com 416 232 3458

   

 

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A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/12fd9c00-fd2c-47ce-a546-291ce40159c1


            

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