Ontario and B.C. credit unions have voted to merge their wholesale suppliers of financial services.
Almost 99% of Ontario credit unions and more than 98% of B.C. credit unions voted to merge Credit Union Central of Ontario and Credit Union Central of B.C. into Central 1 Credit Union.
With combined assets of $7.4 billion and more than 2.7 million members, Central 1 will provide payments, banking, treasury, trade and technological services to more than 200 credit unions in both provinces.
The new entity will be led by a 16-person board: 11 members from B.C. and five elected directors from Ontario. A search is underway to select a CEO for the new organization, which will have offices in Vancouver and Mississauga.
Under the merger, B.C. Central will acquire the assets and assume the liabilities of Ontario Central. Based on the membership of both centrals, Ontario credit unions would receive 31% of voting shares of Central 1; B.C. credit unions would have the remaining 69%.
Ontario Central is working with the Ontario government to finalize regulatory changes to allow credit unions to maintain their statutory liquidity within Central 1. Ontario Central anticipates that regulatory amendments will be finalized by the close of the deal, which is expected near the end of September.