(October 16 – 15:50) – Credit Union Central of British Columbia and Credit Union Central of Ontario report that they have begun discussions aimed at merging their financial services business.

The organizations say the talks could lead to a new, merged entity providing financial services to credit unions in British Columbia and Ontario by January 1, 2002. Any agreement would be subject to shareholder and regulatory approval. The two organizations say formal, detailed merger proposal will be presented next spring to the shareholders of each central.

The two organizations provide a variety of financial services to credit unions in B.C. and Ontario, including liquidity management, wholesale lending, and settlement of both cheques and electronic payment items. The new organization would operate from premises in both Mississauga, Ont., and Vancouver. It would be staffed by the employees already involved in the financial services operations at each central.

“This proposal reflects the changing shape of the credit union system and the financial services industry as a whole,” said Wayne Nygren, president and CEO of the B.C. central. “Merging these functions would create a single organization capable of meeting the financial services needs of both of our largest and smallest credit unions in a cost-effective manner.”

“Each Central has great strengths,” said Jonathan Guss, president and CEO of the Ontario central. “By combining them in a single organization, we’ll be able to provide credit unions with even better tools to take direct aim at the competition and more effectively serve their members.”

The B.C. central has $3.2 billion in assets and 280 employees at its office in Vancouver. It is owned by 76 local credit unions, 39 co-operatives and 38 other corporations. B.C. credit unions have $22.5 billion in assets and more than 1.4 million members.

The Ontario central has $1.5 billion in assets and 160 employees at its office in Mississauga. It is principally owned by 254 credit unions. Ontario credit unions have $10.5 billion in assets and more than one million members.
-IE Staff