Thank you, Madam Chair. I’m pleased to appear before committee today to speak to you about Bill 13, An Act to Repeal the Credit Union Act.
There have not been any credit unions in the Northwest Territories since all of those that had been established failed in the late 1970s. After the depositors of the insolvent credit unions were compensated by the GNWT, a review to determine the cause of the collapse was conducted and one of its conclusions was that the act should be repealed. This was not done at the time, but the act was rendered inoperative with the repeal of most of the regulations and appointments under the act. The Credit Union Act is now very outdated.
Amendments to the Bank Act have been passed that will soon allow local credit unions to be incorporated or branches established under federal legislation. These credit unions would be regulated by the Office of the Superintendent of Financial Institutions, the existing entity that regulates the banks, and deposits will be insured by the Canadian Deposit Insurance Corporation. I look forward to responding to any questions that committee may have.