Credit Union welcomes "banking" terminology change

01.03.2018 16:33
By: Matthew Higgs

The original rules would have forced all credit unions to stop using terms like "bank"

Brandon, MB (CKLQ) - Credit Unions across the country will be getting their wish after the federal budget was announced.

The original rules proposed by the Office of the Superintendent of Financial Institutions would have forced all credit unions or financial technology startups to stop using terms like "bank", "banking" and "banker".

It was intended to provide clarity as the financial sector evolves.

The budget released on Tuesday proposed rewriting the Bank Act to give provincially regulated financial institutions like credit unions "flexibility to use generic bank terms."

CEO of Westoba Credit Union, Jim Rediger says the rules would have forced Canadian credit unions to spend up to $80 million for the changes.

"We would've had to change the terms on websites and marketing posters," said Rediger.

He adds terms like "banking", would've had to be changed to made up words like "credit-unioning."

Westoba was one of the many credit unions welcoming the new decision.