The credit union systems of Ontario and British Columbia have taken another step toward merging the wholesale financial services business of their central organizations.

At the annual general meetings of Credit Union Central of Ontario and Credit Union Central of British Columbia in April, member credit unions endorsed the business case for the merger, and agreed that their centrals should negotiate final agreements and seek the necessary regulatory approvals. The vote in favour was 98.0% in B.C. and 94.9% in Ontario.

Member credit unions in each province will be asked to approve the merger agreements in November. If approved, the merger would take place once regulatory approvals have been secured, expected in mid-2003.

The two organizations announced their intention to explore a merger on October 16, 2000, and since then have been engaged in negotiations, extensive analysis of the proposal and consultation with credit unions in their respective provinces.

Currently, the two provincially-chartered credit union centrals provide a range of financial services to credit unions in their respective provinces, including liquidity management, wholesale lending, and settlement of both cheques and electronic payment items. The merger concept envisions creating a single, federally
regulated organization to perform these functions.

The new organization would assume most of the financial assets and liabilities of the two centrals, and operate from premises in both Vancouver, B.C., and Mississauga, Ont.

Each central also serves as the trade association for its provincial credit union system, providing such services as government relations, education and training, member and public relations, market research and operational assistance. Each provincial system would continue to own and operate a separate organization for trade association services, reflecting the provincial focus of these activities.