Central 1 Credit Union and Credit Union Central Alberta have announced today that they are in merger talks. The consolidation of the two centrals would affect more than 190 credit unions in B.C., Alberta and Ontario.
Central 1 and Alberta Central act as the central financial facilities and trade associations for the B.C. and Ontario, and the Alberta, credit union systems, respectively.
So far, the talks are focused on whether a merger would actually generate efficiencies, offer a stronger liquidity structure, greater diversification of funding sources and better capacity in the areas of finance, payments and trade services.
“Pursuing these discussions with Central 1 will allow us to fully analyze how our combination might enhance our capacity to better meet the needs of credit unions and support their continued expansion in the marketplace,” says Graham Wetter, president and CEO of Credit Union Central Alberta.
Mergers of individual credit unions have resulted in larger credit union organizations and the concentration of assets and members and more complex service needs.
“A merger of our organizations would be another step towards the development of a strong, national organization to support Canada’s growing and vibrant credit union system,” said Don Rolfe, president and CEO, Central 1. “To effectively support credit unions, we need to look at ways to leverage our collective strengths.”
Any proposal to merge would be subject to the approval of regulatory authorities and the boards of directors and shareholders of both centrals.