Protection

Credit unions are provincially regulated, and, in each province, one or more organizations exists to protect the deposits of credit union members. This organization may be called a deposit insurance or deposit guarantee corporation or stabilization fund, corporation, board or central credit union.

Deposit protection funds are built up and maintained at required levels primarily by premiums or assessments levied on individual credit unions. The amount of the contribution is set as a proportion of shares and deposits; or shares, deposits and liabilities; or deposits and borrowings; or gross revenues or interest income; or total assets.

Prevention

Most credit union deposit protection organizations have powers beyond the collection of premiums and the payout of funds, giving priority to stabilization and prevention roles aimed at averting the potential payout of claims.

These organizations monitor credit union financial performance closely, in addition to the independent audits or inspections by government or deposit protection organizations. They can intervene at the early stages of any potential difficulty. Powers of the insuring organization extend to taking over management, supervision, and ordering amalgamation or dissolution of a credit union that is judged to be unable to achieve regulated performance results.

Coverage

The extent of deposit insurance or deposit guarantee varies by province.

Please select your choice of province for details from the drop-down menu below.

CDIC

Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation created in 1967 to protect the money you deposit in financial institutions that are CDIC members in case of their failure.