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FSRA Releases Updated Guidance on the Capital Treatment of Loans under the Federal Government Business Credit Availability Program

TORONTO, February 22, 2021 – FSRA is continuing to protect depositors and contribute to the stability of the sector, while working together with the credit union sector to ensure credit unions can serve their members during this time of rapid change and disruption.

On January 26, 2021, the Government of Canada announced the Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee. The purpose of this program is to help small and medium-sized Canadian enterprises that have been heavily impacted by COVID-19 to have improved access to financing.

To facilitate credit union participation in the HASCAP, FSRA has updated its Interpretation Guidance on the Capital Treatment of Loans under the Federal Government Business Credit Availability Program (BCAP), originally released on May 7, 2020.

The updated Guidance now provides clarity on the capital treatment for loans provided by Credit Unions under the new HASCAP Guarantee, in addition to the BCAP.

Credit Unions should reach out to their FSRA relationship managers with any questions on the application of capital adequacy requirements under the Credit Unions and Caisses Populaires Act, 1994 (CUCPA).

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Resources

FSRA is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more at www.fsrao.ca

For media inquiries:

Malon Edwards
Senior Communications Officer
Financial Services Regulatory Authority
C: 647-296-5479
Email: [email protected]

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