by Nelson Daily Staff on Tuesday April 10 2018
Seven credit unions in the BC Southern Interior continue to forge ahead in a regional amalgamation process with the hopes of better serving the needs of members and communities across the Kootenay, Columbia Valley and Boundary Regions.
In a media release Tuesday, the seven partnering credit unions outlined the next steps as they continue to explore one united credit union.
The seven partner credit unions — Columbia Valley Credit Union, Creston & District Credit Union, East Kootenay Community Credit Union, Grand Forks Credit Union, Heritage Credit Union, Kootenay Savings Credit Union and Nelson & District Credit Union — have spent the winter engaged in discussions regarding the design and potential of a new, united credit union.
“The project is a massive undertaking and has involved more than 60 people including a 21-person steering committee and various management and staff working groups,” the release said.
“An amalgamation between seven credit unions has never before taken place in Canada.”
Currently, the seven credit unions are working together to complete the business case for the combined credit union.
“Once the business case is finalized, it will be reviewed for approval by the Boards of Directors for each of the seven credit unions.
“Once the business case is approved by the partner Boards of Directors, an application for amalgamation will be referred to the Financial Institutions Commission of BC (FICOM) for their consent.”
The release said during this process, each partnering credit union will begin a formal consultation process with their members, so their members will have the opportunity to learn more about the proposed new credit union.
The final stage of approval will be a vote by members of each participating credit union to approve a resolution recommended to them by their Board of Directors. It is expected that this entire process will continue through 2018.
The reason for the amalgamation is partly due to the rapid evolution of the financial services industry.
The purpose of the business case is to define any potential benefits for the members.
After the business case has been concluded, and the Boards believe that it will be best to proceed, this will happen if there is consent from the provincial Regulator and if more than two-thirds of the voting members of each participating credit union votes in favour of the amalgamation.
That vote is expected to happen later this year.