Vancouver-based Central 1 Credit Union, Saskatoon-based Concentra Financial Services Association and Regina-based Credit Union Central of Saskatchewan (SaskCentral) announced on Thursday that they have completed the initial stage of exploring opportunities to consolidate their wholesale financial and trust services.
A steering committee is currently assessing the findings, which show that a consolidation of trust services and wholesale finance lines of business could allow for improved market reach, increased scale, scope, capacity and a broader product offering. This may benefit credit unions by positioning them to more effectively compete with other financial institutions.
“Preliminary evaluations suggest that credit unions are supportive and positive about a consolidated organization that can benefit and strengthen the Canadian credit union system and its stakeholders,” states the organizations’ announcement.
Discussions are focused on trust services, securitization, derivatives, commercial lending, credit union lending, foreign exchange and funding.
The parties will continue to meet in the coming weeks to further discuss consolidation and stakeholders will continue to be consulted throughout the country.
The three organizations announced the signing of a memorandum of understanding (MOU) on Dec. 18, 2014 when they began the initial phase of exploring opportunities to consolidate their trust services and wholesale finance lines of business.