Regulation - LGIC
Increasing credit union deposit insurance premium rates as of January 1, 2011 and changes to capital adequacy and other requirements
Regulation Number(s):
Ontario Regulation 237/09
Instrument Type:
Regulation - LGIC
Bill or Act:
Credit Unions and Caisses Populaires Act, 1994
Summary of Proposal:
The Board of Directors of the Deposit Insurance Corporation of Ontario has recommended that deposit insurance premium rates set out in section 105 of O.Reg. 237/09 be increased effective January 1, 2011.
Amendments to three other sections are also proposed.
• Revoke section 6 which prescribes deposits governed under other Acts that credit unions are able to accept from a member in trust for a named beneficiary. This section is no longer necessary given an amendment to subsection 39 (1) (d) of the Act that removes the requirement to prescribe these types of deposits.
• Amend section 16 to deduct intangible assets, other than goodwill, in excess of 5% of gross Tier 1 capital from the calculation of capital. This would harmonize the calculation with federal rules.
• Amend section 17 to include all shares other than Tier 1 qualifying shares, membership shares, and patronage shares in Tier 2 capital. Also update terminology regarding loan loss allowances to reflect International Financial Reporting Standards (IFRS) accounting terms.
Amendments to three other sections are also proposed.
• Revoke section 6 which prescribes deposits governed under other Acts that credit unions are able to accept from a member in trust for a named beneficiary. This section is no longer necessary given an amendment to subsection 39 (1) (d) of the Act that removes the requirement to prescribe these types of deposits.
• Amend section 16 to deduct intangible assets, other than goodwill, in excess of 5% of gross Tier 1 capital from the calculation of capital. This would harmonize the calculation with federal rules.
• Amend section 17 to include all shares other than Tier 1 qualifying shares, membership shares, and patronage shares in Tier 2 capital. Also update terminology regarding loan loss allowances to reflect International Financial Reporting Standards (IFRS) accounting terms.
Further Information:
DICO Sector Release (English)
Comparison current regulation and proposed revisions
Proposal Number:
10-MOF019
Posting Date:
September 10, 2010
Comments Due Date:
October 25, 2010
Contact Address:
Ms. Luba Mycak
Senior Manager
Frost North - 4th Floor
95 Grosvenor Street
Toronto, ON M7A 1Z1
416-326-9227
Senior Manager
Frost North - 4th Floor
95 Grosvenor Street
Toronto, ON M7A 1Z1
416-326-9227