Better Protecting Credit Union Members in Ontario

FSRA Finalizes its Guidance on Commercial Lending

TORONTO, April 16, 2024 /CNW/ - Ontario's financial services regulator (FSRA) has taken steps to ensure credit union members in Ontario are well protected by promoting stronger credit union lending practices to businesses and other commercial operations.

Following a consultation with the sector, FSRA has finalized Commercial Lending Guidance that establishes outcomes credit unions must achieve to manage and mitigate risks associated with commercial lending.

"The quality of a credit union's commercial lending portfolios is instrumental to its financial well-being, the protection of depositors, and the ongoing ability to serve members," said Mehrdad Rastan, Executive Vice-President, Credit Union and Insurance Prudential at FSRA. "This Guidance sets out specific principles and outcomes to help ensure credit unions better manage their commercial lending business and associated risks so they can continue to serve their members safely."

This guidance outlines the requirements of a credit union's Board and Senior Management and includes a credit union's responsibility to:

• develop and maintain policies, standards and procedures for commercial lending activities;
• manage and protect the systems and technology required for the activities; and
• manage and mitigate associated risks effectively.

FSRA consulted on this guidance and wishes to thank all those who submitted their feedback. 

FOR MEDIA INQUIRIES:

Ashley Legassic
Acting Sr. Manager, Media Relations
Financial Services Regulatory Authority
C: 647-719-8426
Email: [email protected] 

SOURCE Financial Services Regulatory Authority of Ontario