The Ford government is getting ready to level the playing field for credit unions.
Nipissing MPP Vic Fedeli has announced legislation that lets the credit unions participate in group loans the way the chartered banks now do and credit unions that are federally regulated.
Dennis Ryan, the regional manager for Alterna Savings, welcomed the development.
“It’s a fantastic move,” Ryan said.
“It certainly opens up the market for us. It levels the competition field as well.”
Ryan says right now DICO, which is the Deposit Insurance Corporation of Ontario, doesn’t allow credit unions to take part in group loans.
When the legislature resumes sitting today and the Ford government introduces Bill 66, that should start the wheels in motion to change the current setup.
Ryan says in the past when credit unions were approached by the banks to collaborate with projects, the credit unions had to decline because of the current legislation.
“This can be a great opportunity for our members and a great opportunity for the other institutions that we could be working with,” he said.
Luc Racette, who is the vice president of finances and risk with the Caisse Populaire, says Ontario is the only Canadian province that restricts credit unions from taking part in group loans.
However, he says if passed, Bill 66 will allow “us to partner with the banks”.
Racette adds some proposals fell by the wayside because of the current rules and at one point the banks were told to stop calling the credit unions to discuss collaboration because the credit unions couldn’t participate.
