Canada’s Vancity Savings Credit Union and First Credit Union have received regulatory approval to merge from the BC Financial Services Authority.
The Canadian Competition Bureau has also cleared the deal which leaves it to First Credit Union members to give the merger the seal of approval with a vote later this fall.
“The member vote is an important step in the regulatory and approval process and ensures that First Credit Union members have a direct say in shaping the future of their credit union,” Vancity said.
The two credit unions say the merger is “a strategic, values-driven partnership”. The new entity will have 585,000 members, more than 2,400 employees, 60 combined branches across British Columbia, and over CA$38.2bn in total assets under administration.
“This regulatory consent and clearance are a testament to the thoughtful and strategic approach both Vancity and First Credit Union have taken in planning this partnership,” said Vancity president and CEO Wellington Holbrook.
“It validates our shared belief in the future of community banking, and that this new model means we can better serve the people who count on us, support local economies and build a better world. We are excited to move forward to the member vote and to build a future where cooperative values thrive.”
“Receiving BCFSA’s consent and clearance from the Competition Bureau marks a pivotal moment for First Credit Union and our dedicated members and employees,” added Linda Bowyer, CEO of First Credit Union.
“This proposed merger offers a made-in-BC solution to the evolving demands of the financial landscape, providing our members with access to Vancity’s extensive resources and advanced digital capabilities, while preserving our deep roots and local presence in the communities we serve. We believe this partnership is in the best long-term interest of our members and the co-operative banking system as a whole.”
Vancity Credit Union members will not be voting on the merger, which suggests the credit union will acquire First Credit Union. According to the BC Financial Institutions Act, only the transferring credit union’s members vote.
“Vancity’s board has approved proceeding with the proposed merger based on its strategic alignment and the benefits it offers to members, employees, and the communities we serve,” it said in a statement.
Vancity has not confirmed the name of the new entity but the fact that its members do not have to vote on the merger indicates it will maintain its charter, governance, and name intact.
“That’s part of the work for day one preparedness if the proposed merger is approved,” a spokesperson said on the new entity’s name. “What’s important is that this model is built on both Vancity and First Credit Union’s deep commitment to community. The current First Credit Union branches will operate under a local brand identity, and the combined entity will maintain a strong presence in First Credit Union’s communities, with local voices and leadership continuing to drive decisions and community partnerships,” they added.
This story was amended on 7 October to add additional comments from Vancity
