Update on two outstanding federal credit union continuance applications (Innovation Credit Union and First West Credit Union) | General financial discussion | Discussion forum

It's been awhile since I've updated everyone here on two outstanding federal credit union continuance applications by Saskatoon, SK-based Innovation Credit Union and Langley, BC-based First West Credit Union. Both applications have been been delayed, sometimes repeatedly, with the anticipated federal continuance continuously pushed back into the following year.

However, I am a quite confident, based on Innovation CEO Daniel Johnson's remarks at the April 2022 Innovation Credit Union AGM, in saying that we are now very likely to see Innovation Credit Union continued as a federal credit union in 2022 (perhaps as soon as July or August, but more likely in the fall).

With regard to First West Credit Union's application, it's been approved by the membership, with 84% of those voting (roughly 24,000 members) voting in favour. Its continuance date has not been pushed back significantly, and they are a larger credit union, so I do not expect it likely to be delayed past 2023. I'm less confident than in the Innovation case, but I do feel reasonably confident in saying that First West Credit Union is likely to be continued federally at some point in 2023.

Both continuances are likely to have significant impacts on the provincial credit union systems in British Columbia and Saskatchewan, as they represent significant share of system loans and deposits. In B.C. in particular, First West is B.C.'s second-largest credit union, and its previous second-largest credit union (Coast Capital Savings) was continued federally several years ago. We could well see the B.C. credit union system reduce the deposit insurance guarantee from unlimited to something more in line with the Ontario system ($250,000 per depositor, per deposit category).

Cheers,
Doug