Feds to review whether credit unions can use banking terms following outcry

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Canadian Place ones faith Union Association president applauds move

The Canadian Press Situated: Aug 11, 2017 4:35 PM ET Last Updated: Aug 11, 2017 4:35 PM ET

Ottawa says it is reviewing whether confidence in unions should be allowed to use the terms «banks,» «banker» and «banking» after the federal regulator that watch overs financial institutions ordered them not to.

In late June, the Office of the Controller of Financial Institutions (OSFI) issued an advisory prohibiting credit syndicates from using the terminology to describe their services.

The Canadian Faith Union Association (CCUA) called the move unfair, saying it would get somewhere it difficult for credit unions to compete fairly with banks.

The Subsidize Department said Friday it is seeking views on whether credit societies should be allowed to use «banking» and similar language when describing their posts while still avoiding marketplace confusion and protecting consumers.

The pronouncement came as the department launched the second stage of consultations on a broader look at of the financial sector, which started last August.

CCUA president Martha Durdin commended the announcement, saying credit unions need to speak to the customers they for in a way they can understand.

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