Vancouver, B.C., January 5, 2021 – Central 1 Credit Union (“Central 1”) today announced the Mandatory Liquidity Pool (MLP) has been successfully transitioned from a deposit structure to an investment structure. This represents a significant change in liquidity management for Central 1 and the credit union system in B.C. and Ontario.
One of Central 1’s core initiatives for 2020 was to restructure liquidity management to best support the credit union system across both provinces and create closer alignment with federal and international regulatory standards.
Together with its members and in collaboration with the B.C. Financial Services Authority (BCFSA) and the Financial Services Regulatory Authority of Ontario (FSRA), Central 1 worked in earnest to complete the transition.
As previously announced by Central 1 in late 2019, Central 1’s Board of Directors approved, and BCFSA accepted, a plan to segregate the MLP to ensure it is bankruptcy remote and creditor-proof while maintaining a cost-effective and capital efficient structure for the credit union system to manage its liquidity, drive market confidence and comparability, and ensure the system and individual credit unions continue to thrive.
About Central 1
Central 1 is a preferred partner for financial, digital banking and payment products and services – fuelling the success of businesses across Canada. We leverage our scale, strength and expertise to power progress for more than 250 credit unions and other financial institutions, enhancing the financial well-being of more than 5 million customers from coast to coast.
For more information, visit www.central1.com.
– ENDS –
Head of Communications
T 604 369 4031