Credit Union Deposit Guarantee Protection

All deposits in any Manitoba credit union are guaranteed without limit. The Credit Union Deposit Guarantee Corporation of Manitoba ensures that Manitoba credit unions operate under sound business practices.

The Credit Union Deposit Guarantee Corporation commenced operations in 1965 as the Credit Union Stabilization Fund and is administered by a Board of five Directors appointed by the Lieutenant Governor in Council, Province of Manitoba. Since 1970, legislation has required that every Manitoba credit union be covered by the Corporation’s guarantee. The Corporation has comprehensive monitoring programs in place to analyze lending practices, financial performance and operating procedures of each credit union. Each credit union is also required to have an independent annual audit of its financial statements.

Vision

The Corporation contributes to the strength, stability and success of the credit union system as a proactive regulator that provides protection for Manitoba credit union deposits.

Mission

To guarantee deposits and maintain confidence in the Manitoba credit union system, by focusing on sound business practices, governance, performance and risk management.

Primary Roles

Provide a 100% guarantee of deposits held with Manitoba credit unions.
Ensure compliance with The Credit Unions and Caisses Populaires Act.
Monitor credit union performance and implement appropriate actions to improve performance and reduce risk.

The Deposit Guarantee

As a first level of protection, each credit union is required, by legislation, to build capital. That capital is comprised of: Retained Earnings, and Shares owned by its members - common shares; surplus shares; and preferred shares (if any). Additionally, the Credit Union Deposit Guarantee Corporation provides a 100% guarantee of all deposits with Manitoba credit unions including accrued interest to date of payout. This guarantee covers all deposits including those in a foreign currency or with terms exceeding five years. The guarantee is not affected by a credit union changing its name, amalgamating or entering into similar agreements. The guarantee covers deposits only. The guarantee does not cover non-deposit investments which would include members’ share capital, mutual funds and self-administered RRSPs that are not deposits (e.g. shares and mutual funds).