The provincial government has put forward a bill in hopes of cutting red tape for credit unions in Ontario.
Nipissing MPP and Finance Minister Vic Fedeli made the announcement Friday morning at his constituency office on Main Street. He was joined by three regional credit union officials at the press conference.
Fedeli believes that the current set of rules, impact the growth of credit unions in the province.
“Before this bill, for instance, one of our local credit unions was unable to participate in finance deals that are bank led, it is just the way the law is,” explained Fedeli.
“It is a piece of red tape that stops their growth and stops their development and hurts our businesses and our non-for-profits here in town who are being financed by federally regulated banks. This will now allow the credit unions to be a partner with them in something that is led by the banks.”
Luc Racette, Caisse Populaire Vice-President Finances and Risk, believes this is great news and will bring Ontario up to speed with other provinces.
“Ontario has an old act so that is what we are looking at and making adjustments where they can and as fast as they can but we have old rules and the financial sector is moving very, very fast in the last couple of years,” said Racette.
This potential change is part of a package of reforms accompanying the recent introduction of Bill 66 which is being called the “Restoring Ontario’s Competitiveness Act.”
Fedeli believes the proposed Bill will impact 79 credit unions and create more opportunities for their 1.5 million members.