The credit union is owned by its Members. Every Member, through their Membership Shareholdings, owns four shares of the organization, and has one vote on major decisions placed before the Membership.
There are many differences between banks and credit unions. But the most important is that credit unions are democratically run. Credit unions’ primary commitment is to serve their members’ financial needs, whereas banks and trust companies exist to earn profits and dividends for shareholders.
Yes. In fact, Ontario credit unions are among Canada’s soundest financial institutions. The Deposit Insurance Corporation of Ontario (DICO) insures Canadian currency deposits, including interest, to a maximum of $100,000 per Member. Deposits held in RSP, RIF, LIRA , LIF, RESP, and TFSA are fully insured with no maximum amount. Unique trust or joint accounts are insured separately from those in your own name, to a maximum of $100,000 per account.
Each credit union operates independently. Policies and procedures are set and monitored by a volunteer Board of elected Directors. The day-to-day operations are the responsibility of the chief executive officer. The democratic structure of credit unions is what makes them unique. Each credit union member has one vote and an equal voice in the management and direction of the credit union.
Credit unions in Ontario are regulated by the Financial Services Commission of Ontario, in accordance with the provincial government’s Credit Unions and Caisses Populaires Act as well as the Deposit Insurance Corporation of Ontario.
Credit unions are community-based and community-focused. At Equity Credit Union, we play an integral role in local development by reinvesting deposits and profits in the community as personal and business loans, mortgages and potential dividends paid on Member shares.