Our approach to protecting deposits is proven and effective.

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 when risk is elevated.
• Ensuring Healthy Finances: Through regular reviews, we ensure credit unions have enough cash and capital to support their operations and cover their business risks.
• Deposit Guarantee Fund: We maintain a Deposit Guarantee Fund, supported by earnings and annual contributions from Saskatchewan credit unions.

No one has ever lost a dollar deposited in a Saskatchewan credit union in our history due to credit union failure.

Standards of Sound Business Practice
The Credit Union Act, 1998 gives us the power to set Standards for Saskatchewan credit unions. These Standards, approved by our board and filed with the Registrar of Credit Unions, set minimum requirements to regulate credit unions effectively.

We create regulatory guidelines to help credit unions follow these Standards. Our level of oversight depends on each credit union’s size, complexity, and risk. Larger credit unions, like Conexus and Affinity, are considered provincial systemically important financial institutions (P-SIFIs) and must also comply with additional requirements.

The goals of the Standards include:

• Setting requirements for good governance and risk management to keep credit unions safe and protect deposits
• Limiting practices that create elevated risk

The Standards emphasize making practical decisions, considering:

• The credit union’s goals
• Risks the credit union faces
• The amount of cash and capital available
• The need to follow regulations

Prudential Standards
Under The Credit Union Central of Saskatchewan Act, 2016, we set Prudential Standards for SaskCentral with input from the Registrar. These standards are similar to those for credit unions and ensure SaskCentral operates safely and responsibly.

The goals of Prudential Standards include:

• Setting requirements for good governance and safe operations
• Limiting practices that create elevated risk

SaskCentral, is also a P-SIFI, and must comply with additional requirements.

Supervision of PRFIs
Beyond setting and communicating regulations, we:

• Monitor whether PRFIs meet expectations
• Direct PRFIs that aren’t meeting standards to take action
• Step in if a PRFI’s performance is not at an acceptable level

Our Supervisory Framework guides our supervision of PRFIs. This includes principles, processes, and tools for assessing each institution’s risk profile. Our Assessment Criteria guide our assessments of the safety and soundness of PRFIs.

We aim to ensure credit unions and SaskCentral are well-governed and financially stable. Through consolidated financial statements and key performance indicators, we assess the strength of Saskatchewan’s credit union system.