For immediate release
Vancouver, BC, Saskatoon, SK & Regina, SK, April 30, 2015 — Central 1 Credit Union (Central 1), Concentra Financial Services Association (Concentra) and Credit Union Central of Saskatchewan (SaskCentral) have completed the initial stage of exploring opportunities to consolidate their wholesale financial and trust services. A tri-organizational steering committee is currently assessing the findings.
Preliminary evaluations suggest that credit unions are supportive and positive about a consolidated organization that can benefit and strengthen the Canadian credit union system and its stakeholders. Discussions are focused on trust services, securitization, derivatives, commercial lending, credit union lending, foreign exchange and funding.
The national landscape for credit unions is changing. Some credit unions are becoming large financial institutions, with progressively more complex needs. Credit unions can also now opt to become federally chartered. A consolidated wholesale financial and trust organization has the potential to strengthen the system by delivering innovative, robust and scalable solutions to assist credit unions in serving the needs of their members.
Findings from these early discussions show that a consolidation of trust services and wholesale finance lines of business could allow for improved market reach, increased scale, scope, capacity and a broader product offering, which may benefit credit unions by positioning them to more effectively compete with other financial institutions.
The parties will continue to meet throughout the coming weeks to build on the work that has already been completed and advance consolidation discussions. Further discussions will continue with stakeholders across the country.
The three organizations announced the signing of a Memorandum of Understanding (MOU) on December 18, 2014 when they began the initial phase of exploring opportunities to consolidate their trust services and wholesale finance lines of business.
Central 1 and Concentra are leading providers of wholesale financial and trust solutions to Canada’s credit unions. SaskCentral is the largest shareholder of Concentra.
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About Central 1
With offices in Vancouver, Mississauga and Toronto, Central 1 – which holds approximately $13.1 billion in balance sheet assets – provides wholesale financial products, trust services, investment banking services, payment processing solutions and direct banking services to more than 300 credit unions and institutional clients from coast to coast.
In addition, Central 1 is the primary liquidity manager, payments provider and trade association for our member/owner credit unions in B.C. and Ontario. Our members represent a consumer-oriented, full-service retail financial system that collectively serves 3.3 million members and holds more than $97.7 billion in assets. For more information, visit www.central1.com.
Concentra exists to enhance the success of Canadian credit unions and their members by delivering competitive, high-quality national wholesale and trust solutions. Concentra is a federally-regulated financial institution owned by credit unions, centrals, and other co-operative partners with approximately $7 billion in assets and $33 billion in assets under administration.
Concentra leverages its regulatory capacity, national network, and industry solutions to help credit unions optimize financial performance, diversify risk and meet member needs. Serving more than 300 credit unions across Canada, Concentra is committed to be a valued and strategic partner to the system. For more information, visit www.concentrafinancial.ca.
SaskCentral is a financial-services co-operative owned by Saskatchewan credit unions to serve and represent their collective interests. Services provided to Saskatchewan’s 49 credit unions include liquidity management, consulting services, research and support. SaskCentral functions as a trade association enabling the province’s credit unions to speak with a common voice.
SaskCentral also maintains business arrangements with, and investment in, a number of co-operative financial service organizations, including an 84% interest in Concentra Financial. These relationships provide Saskatchewan credit unions with required services and also enable SaskCentral to achieve efficiencies by dealing with key service suppliers on behalf of the entire Saskatchewan credit union system. For more information, visit www.saskcu.com/saskcentral.
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