Libro’s still ‘banking’ – and saying thank you for the support
SOUTHWESTERN ONTARIO – Libro Credit Union is expressing gratitude to everyone who took part in a conversation this summer on whether credit unions can say they are in the banking business.
Now, credit unions have been told that enforcement of a ban on using terms like “banking” is being suspended while a review takes place. Our reply to the federal government is: “Thank you for listening to us.”
Back in June, the Office of the Superintendent of Financial Institutions issued an advisory saying only banks could use common terms like “banking” to describe day-to-day services like taking deposits. That led to a campaign by credit unions, supported by Canadians, asking for a common-sense approach. Now, OFSI has published a notice about “suspending the compliance expectations set out” in the advisory, pending a review of the Bank Act restrictions.
“Thank you,” said Libro Credit Union CEO and head coach Steve Bolton. “There is still work to be done, but this is a positive outcome for everyone involved in the credit union system and we’re grateful to Finance Minister Bill Morneau and the federal government for listening to us on this important issue.
“We want to express thanks to everyone who made their views clear, on social media, in writing and in person to their political representatives. Thank you to all the MPs who listened carefully and to all the individuals and organizations who supported us.
“This previous notice would have cost credit unions about $80 million if it had gone through, and the cost to Libro alone would have been in the region of $500,000. That’s money that should instead be used to grow prosperity and help people in our communities, and I’m happy we can get back to our core purpose of doing that.
“It’s important, though, that the conversation doesn’t end here. As the Bank Act review approaches, we will continue to speak with MPs and the wider community about the positive effects the credit union movement has on Canadians’ daily lives and future success.”
There is also background here, in a media release by the Canadian Credit Union Association.
We would be happy to set up media interviews with Steve Bolton, or Tania Goodine, EVP Engagement.
For further information, or to arrange an interview, please contact: Mike Donachie, Communications Manager, Libro Credit Union
P: 519-672-0130 ext. 4344, C: 226-926-4068, firstname.lastname@example.org
Libro Owners and staff have been extremely supportive in voicing their opinions to the initial ruling made by the Office of the Superintendent of Financial institutions, banning credit unions from using the words "bank", "banker", and "banking".
Some of the media coverage:
- Ontario Morning on CBC Radio
- London Free Press - Libro Credit Union will pay price for semantic crackdown
- London Free Press -Back to 'banking' as feds back off
- CBC London - Regulator backs away from ordering credit unions to stop using the word 'bank'
In addition to the media coverage we've had, Libro Owners and staff have been extremely supportive over social media by using the hashtag #iBANKwithaCreditUnion to voice their opinions with the ruling and advocating for a change that will allow all Credit Unions to fairly compete with other financial institutions.
Here are their voices: