July 7th

Sunrise Credit Union disagrees with federal regulator’s decision to ban use of common terms “to bank” and "banking” by credit unions

Brandon, Manitoba (July 7, 2017) – On Friday, June 30, the federal Office of the Superintendent of Financial Institutions (OSFI) issued an advisory that essentially banned credit unions from using the term “banking” to describe the services they offer Canadians. Their advisory takes a strict interpretation of the Bank Act, and based on this interpretation, the federal government could lay criminal charges against any credit union that uses the term “bank,” “banker,” or “banking”.

“Quite frankly we disagree with OSFI’s recent advisory”, says Tim Klassen, President/CEO, Sunrise Credit Union.  “It goes against all elements of common sense. The Bank Act has been written in a way that does not allow credit unions to use the words ‘bank’, ‘banker’ and ‘banking’ to describe our business and until recently the federal government has not enforced the Act. Sunrise has higher deposit protection and offers comparable financial services as federally chartered banks.  This decision by OSFI makes it extremely difficult for credit unions to compete fairly and without the fear of facing criminal penalty.”

“OSFI has taken a position that is inconsistent with its past practices and with common sense,” said Martha Durdin, president and CEO, Canadian Credit Union Association. “The Minister has the power to fix this so that Canadians continue to have a real competitive option to the big banks.”

To view the Canadian Credit Union Association’s response to the advisory, on behalf of the Canadian credit union industry, click here.

 About Sunrise Credit Union

Sunrise Credit Union was formed in 2008 through the strategic merger of its five legacy Credit Unions- respectively, Virden (est. 1940), Turtle Mountain (est. 1940), Hartney (est. 1942), Tiger Hills (est. 1943) and Cypress River (est. 1960) – to provide personalized competitive financial services to benefit its members and communities.  Since then, in 2014 and 2017 respectively, Sandy Lake (est. 1952) and Grandview (est. 1947) Credit Unions have joined the Sunrise family.

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