Saskatchewan credit unions are credit unions that have incorporated provincially. Find a list of all Saskatchewan credit unions here.
Under provincial regulation, Saskatchewan credit unions are subject to provincial legislation and CUDGC regulatory oversight.
Federal credit unions are credit unions that have incorporated under the Federal Bank Act. These credit unions can operate across Canada. As such, they are subject to all applicable federal laws.
No. All deposits held in Saskatchewan credit unions are fully guaranteed. There is no limit to the size. Whether $1, $1M or more, all deposits are guaranteed.
The guarantee applies to all forms of personal, business and trust deposits held in Saskatchewan credit unions. This includes, but is not limited to:
- chequing or savings accounts
- term deposits such as GICs
- registered plans, such as RRSPs, on deposit in a credit union
- the Canadian equivalent of funds deposited in another currency
- accrued interest on deposits
- principal on index-linked term deposits – the return is guaranteed once the credit union is holding it
Our guarantee does not apply to the following:
- Any form of equity or capital
- Mutual funds or securities
- Contents of a safety deposit box
- Deposits held at federal credit unions
- Losses due to circumstances unrelated to credit union failure (e.g. member fraud, member error, etc.)
Yes, accrued interest on deposits is included.
Yes. The guarantee covers all deposits in Saskatchewan credit unions. Membership status, citizenship, or residence of the depositor are not a factor.
No. CUDGC provides deposit protection to all credit union depositors, regardless of membership status.
Mutual funds and securities are not deposits made in a credit union. They are investments purchased by an agent. As such, they are not covered by our guarantee.
Shares and equity are not deposits. The guarantee does not cover any form of equity or capital.
CUDGC is accountable to the Government of Saskatchewan through the Registrar of Credit Unions. The Registrar has ultimate responsibility for the registration and regulation of credit unions.
There is no explicit government backstop on deposits held in Saskatchewan credit unions. However, CUDGC can access financing from any government or regulatory body if necessary. CUDGC has never had to rely on the government for financial assistance.
Prevention is our key deposit protection strategy. Our preventive approach includes:
- High standards of sound business practice
- Comprehensive monitoring practices
- Intervention if required
- Preventive programs
- Regulatory policy and guidance
This approach ensures sound credit union operations and reduced risk. When combined with our strong guarantee fund, we are able to guarantee deposits of all sizes.
No depositor has ever lost a dollar on deposit in a Saskatchewan credit union in CUDGC’s history due to credit union failure. Nor has CUDGC ever had to rely on the government for financial assistance.
We use three lines of defence to protect deposits:
- Setting Regulations: Credit unions must follow our Standards and regulatory guidance. We check to ensure they comply and step in if we find a deposit risk.
- Ensuring Healthy Finances: Through regular reviews, we ensure credit unions have enough capital to support their operations and cover their business risks.
- Deposit Guarantee Fund: We maintain a Deposit Guarantee Fund, supported by earnings and yearly payments from Saskatchewan credit unions.
As the primary regulator, CUDGC monitors and examines credit unions. Credit union boards of directors are responsible for ensuring credit unions operate in a sound and prudent manner and in the best interest of depositors. Credit unions must have their operations audited annually by independent auditors. Credit unions report on their business, including disclosure of audited financial statements, at annual meetings.
Credit unions pay an annual assessment to the guarantee fund. This fund, managed by CUDGC, is set aside to repay the full amount of funds on deposit in Saskatchewan credit unions should a credit union fail.
The fund grows through the annual assessment paid by credit unions and interest earned on the fund. CUDGC’s preventive initiatives ensure that the fund is rarely drawn down.
The federal government regulates chartered banks and some trust companies. The Canada Deposit Insurance Corporation (CDIC) determines and provides insurance coverage for federally regulated financial institutions who include banks, federal credit unions, as well as loan and trust companies. The CDIC currently covers deposits up to $100,000.
Each province has its own deposit protection program for provincially regulated credit unions. The amount and type of deposit protection varies by province. As the deposit guarantor for Saskatchewan credit unions, CUDGC guarantees the full amount of all deposits.
Credit unions in Canada are regulated provincially. Each province has its own deposit protection program. The amount and type of deposit protection varies from province to province.
Saskatchewan credit unions are regulated under The Credit Union Act, 1998, The Credit Union Regulations, 1999 and The Credit Union Insurance Business Regulations. Credit unions must also comply with CUDGC’s Standards of Sound Business Practice, and the bylaws and policies established by their own credit union.
In 2012, the Federal Bank Act gave credit unions the ability to become federal credit unions.
The Office of the Superintendent of Financial Institutions (OSFI) regulates credit unions incorporated under the Federal Bank Act. These credit unions are subject to all applicable federal laws and can operate across Canada, much like Canadian banks.
The Canada Deposit Insurance Corporation (CDIC) protects deposits placed with federal credit unions. Federal credit union deposits are not covered under provincial deposit insurance programs.
CUDGC is not associated with the CDIC. Learn more about CDIC deposit insurance on their website.
No. Federal credit unions are not entitled to any portion of the guarantee fund in Saskatchewan.