Regulation - LGIC

Amendments to permit credit unions to participate in loan syndications led by banks listed in Schedule I to the Bank Act (Canada)

Regulation Number(s):
O. Reg 237/09
Instrument Type:
Regulation - LGIC
Bill or Act:
Act
Summary of Decision:
O. Reg. 237/09 under the Credit Unions and Caisses Populaires Act, 1994 (CUCPA) has been amended to allow credit unions to participate in loan syndications led by banks listed in Schedule I to the Bank Act (Canada).
Analysis of Regulatory Impact:
There are no incremental compliance or administrative costs to the credit union sector. There are no administrative costs, upfront capital costs, upfront and ongoing operating costs, or fees to the credit union sector as a result of the amendment.
Further Information:
Click to open e-laws posting
Proposal Number:
18-MOF024
Posting Date:
Summary of Proposal:
The amendment allows credit unions to participate in loan syndications led by banks listed in Schedule I to the Bank Act (Canada). Previously, credit unions could participate in loan syndications led by certain types of institutions (e.g., other credit unions), but not federally regulated financial institutions such as banks.
The amendment will help Ontario businesses gain better access to financing through bank-led syndicated loans involving credit unions. It will also help credit unions compete with other lenders by providing larger loans to their members.
Contact Address:
Victoria Lesau
Senior Policy Advisor
Deposit-Taking Institutions and Co-operatives Policy
Financial Services Policy Division
Ministry of Finance
Frost North - 4th Floor
95 Grosvenor Street
Toronto, ON M7A 1Z1
Phone: (416) 326-9218
Effective Date:
December 7, 2018
Decision:
Approved

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