Purpose of consultation:

Promoting the safety and protection of credit unions’ liquidity and ensuring that credit unions have reliable access to assets held for liquidity purposes is important in promoting the stability of the sector and protecting member deposits. To further enhance prudent liquidity management, the Financial Services Regulatory Authority of Ontario (FSRA) proposed amendments to its existing liquidity guidance to ensure that assets credit unions hold for liquidity purposes are:

  • Available on demand; and
  • Protected from creditors of third parties. 

These amendments also advise on minimum liquidity requirements and are designed to assist credit unions in maintaining sufficient liquidity. Further, these proposals are designed to advance FSRA’s oversight capabilities over the prudent liquidity management practices of Ontario credit unions.

  • Guidance Note: Liquidity Guidance (2018)
  • Guidance Note: Stress Testing – Credit Unions with Assets Greater Than $500 Million (2017)
  • Liquidity Coverage Ratio Completion Guide (2017)
    • Template: Liquidity Coverage Ratio (2018)
  • Net Cumulative Cash Flow Completion Guide (2017)
    • Template: Net Cumulative Cash Flow (2018)
  • Net Stable Funding Ratio Completion Guide (2017)
    • Template: Net Stable Funding Ratio (2018)

FSRA has received 7 submissions on the proposed amendments to the existing liquidity guidance during the consultation period of November 2, 2020 to December 2, 2020. The submissions and comments are available on FSRA’s website

Our response

FSRA would like to thank all commenters for the views expressed. FSRA is carefully considering all comments received before finalizing and issuing the guidance.

List of contributors

The following stakeholders took the time to share their perspectives with FSRA:

  1. Nick Best (Canadian Credit Union Association)
  2. (Bernard Brun) Desjardins Financial Group
  3. (Greg Weber) Healthcare & Municipal Employees' Credit Union        
  4. (Robert Wellstood) Kawartha Credit Union
  5. (Bruce Klassen) Meridian Credit Union
  6. (Emily Vanderkruk) Northern Birch Credit Union
  7. (Sandy Alward)Tandia Financial Credit Union