Ontario’s Ministry of Finance is proposing to modernize the legislation governing credit unions.

The government yesterday issued a consultation paper proposing reforms to the regulation of credit unions and caisses populaires in Ontario. “This exercise is part of the government’s commitment to modernize financial sector regulation and support a new generation of economic growth,” it says.

The government says the proposed changes, “are intended to enable credit unions and caisses populaires to serve their customers better and compete in the financial services marketplace. The proposals are also intended to enhance the sector’s stability, which is also an essential component of its competitiveness.”

“These proposals would also streamline regulatory processes and enhance the ability of credit unions and caisses populaires to manage risk, strengthen governance, increase efficiency and improve consumer protection,” it adds.

It reports that during the past year, the government, in collaboration with the Financial Services Commission of Ontario and the Deposit Insurance Corporation of Ontario, has been working with representatives of credit unions and caisses populaires to identify improvements to the Credit Unions and Caisses Populaires Act.

Comments are sought by December 16.