What We Do - Credit Union Deposit Guarantee Corporation

Regulation of Credit Unions

Regulates through examination, monitoring and enforcement activities.

Examines credit unions for compliance with legislation and sound business practices utilizing a risk-based approach.
Performs regular desk audits using an inquiry program accessing the credit unions’ on-line database. Selects random transactions to examine as well as identifies transactions that meet specific criteria (which may be of a higher risk) to investigate.

Receives monthly, quarterly, and annually financial statements and other regulatory reports from credit unions. Reports are reviewed and, if necessary, remedial action is taken. Also reviews independent audited statements of credit unions prepared by accountants licensed under the Chartered Professional Accountants and Public Accountants Act.

Credit unions that are non-compliant (after the expiry of any approved exemption) are assessed fines and penalties pursuant to legislation and/or placed under supervision by the Corporation.

The Corporation stabilizes credit unions through supervision, training and risk management activities.

Pursuant to the Act, credit unions experiencing on-going difficulties may be placed under supervision. The degree of supervision depends on the severity of the problem. The supervision process could involve requiring a credit union to prepare a plan to address the problem creating the difficulty and monitoring for compliance, replace the Board of Directors, merge the credit union with another credit union, or wind up a credit union.

In accordance with the regulations, the Corporation may prescribe the minimum level of training for a director or officer of a credit union. The Corporation encourages training of directors in good corporate governance practices by financially supporting director training.

Directly administers five insurance policies on behalf of the credit union system: Bonding, Directors & Officers Liability, Corporate Errors and Omissions, Employment Practices Liability and On-line Banking.
Serves as the provincial representative on the Master Policy Holder Committee and the National Risk Management Committee.
Ensures that minimum coverage levels are maintained by credit unions where the insurance is not directly administered by the Corporation (e.g. Privacy and Cyber).