BCFSA Releases Final Proposal on Capital Modernization for B.C. Credit Unions

BCFSA has finalized its consultation on Capital Modernization for B.C. credit unions. The Capital Modernization Consultation Summary Report summarizes an extensive consultation held with credit unions and other stakeholders to develop a proposal for a new Capital Rule effective January 1, 2026.

Capital requirements are in place to protect depositors and the soundness of the financial system by determining how much capital B.C. credit unions are required to hold.

The report published today reflects recommendations centred on Basel III standards, standards and best practices in other provincial jurisdictions, the Office of the Superintendent of Financial Institutions, and the unique characteristics of the B.C. credit union segment. It summarizes the feedback BCFSA received during the consultation period from a diverse representation of B.C. credit unions, the Canadian Credit Union Association (“CCUA”), and the public. The report includes changes made to the July 2023 Capital Modernization Consultation Paper to reflect the feedback received, and details BCFSA’s decisions and next steps.

What’s Next?

Following the publication of today’s report, the Capital Modernization Project will move towards implementation, including developing the legislation and operational requirements for the changes recommended.

• Working with the Ministry of Finance, BCFSA will continue the development of the Capital Rule, which is anticipated to be completed in 2025;
• Following the development of the Capital Rule, the implementation and transition stage of the project is expected to be completed in 2025;
• Assuming the Capital Rule is approved, BCFSA intends to bring it into force on January 1, 2026. This effective date followed by a three-year transitional period will support credit unions in making the required adjustments to their capital regime and operations.

Learn More

Read the full Capital Modernization Consultation Summary Report.