Credit unions offer many financial services such as cash deposits, investments, mortgages and more. If a credit union in Ontario goes bankrupt, the Deposit Insurance Reserve Fund (DIRF) – administered by FSRA – protects its members’ eligible deposits.

All credit unions in Ontario are required by law to pay annual deposit insurance premiums into the DIRF.

FSRA calculates these premiums through its Differential Premium Score Determination (DPSD) document. The document links the level of a credit union’s risk to the premiums assessed to it. The riskier a credit union’s capital and corporate governance, the higher its premium. This makes the system more equitable and fair.

FSRA reviews premium rates and assesses credit unions annually to further reduce risk in the sector.

For more information, please refer to:

Credit Unions and Caisses Populaires Act, 2020

FSRA’s Differential Premium Score Determination (DPSD) document

DPS continuous premium calculation tool [XLSX]

ICAAP (internal capital adequacy assessment process)

Monthly data filing/completion guide