Deposits at different credit unions are separately guaranteed by DICO in Ontario. By arranging your deposits to conform to the definitions of a deposit in the province, insurance protection can reach many times the insured limit of $100,000. Corporate and business accounts are insured separately, as are joint accounts and trusts.
Central 1 Credit Union is in discussions with both provincial governments to ensure that credit unions are not disadvantaged by any changes in the protection afforded to bank depositors.
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.
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 the sub-prime lending that has caused problems in the U.S.
The deposit insurer is a provincial government entity.
Yes, credit unions are primarily funded by member deposits, not borrowings, as many U.S. banks are.
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.