Deputy Superintendent Radiskovic’s opening remarks at Canadian Credit Union Association Regulatory Forum

I’m pleased to be here today, engaging with all of you. Meetings like today are important, giving us the opportunity to learn from one another and exchange perspectives on the challenges ahead.

It is essential to acknowledge that the collective efforts of all institutions, including of course, credit unions, are the cornerstone of maintaining a secure and viable financial sector in Canada.

At the heart of OSFI’s work is our clear purpose: to contribute to public confidence in Canada’s financial system by promoting the safety and soundness of financial institutions, while allowing them to compete and take reasonable risks.

Our mandate is to ensure federally regulated financial institutions remain in sound financial condition. Our job is to provide the structure in which institutions, including federally regulated credit unions, manage such risks and, at the end of the day, ensure that they are, indeed, managing them appropriately.

We are responsible for administering a number of federal statutes, including the statute applicable to the regulation of federal credit unions (the Bank Act). A local cooperative credit society may continue as a federal credit union under the Bank Act.

As part of the regulatory process, OSFI assesses applications for continuance and makes recommendations to the Minister of Finance who has the ultimate responsibility for approving the continuance.

We know that credit unions play a vital role. Their cooperative model offers distinct advantages, fostering community-driven financial services and providing alternatives to traditional banking structures.

OSFI recognizes that credit unions face unique challenges—particularly when competing with Canada’s large, well-capitalized banks.

The need for scale is real. Growth is necessary to remain competitive, and amalgamation—when two institutions merge to become a single entity— offers a path forward.

We’ve seen successful models, such as Desjardins’ approach, where multiple affiliated credit unions have amalgamated under a provincial framework. It demonstrates how an amalgamation can strengthen credit unions by improving scale and efficiency, while maintaining their cooperative principles.

Amalgamation may not just be seen as beneficial—it’s often needed in an evolving financial landscape. But the decision to pursue it provincially or federally rests with the institutions and their members.

OSFI does not take a position on amalgamation and remains neutral on the matter.

What matters to us is making sure that the process involved in the transition to federal oversight for credit unions is as effective, timely and efficient as possible – while maintaining the integrity of our process and our prudential standards.

We are exploring ways to improve the efficiency of our application process, particularly in the early stages. For credit unions considering federal continuance, we’re looking at how we can better support institutions during the early pre-application period – whether through earlier feedback, more structured engagement, or identifying opportunities to advance certain elements in parallel.

While we are open to streamlining aspects of the approval process, we can only go so far. Our ability to accelerate these processes is bounded by legislation—particularly the Bank Act.

We will never compromise on our high prudential standards that underpin financial stability. Our decisions are guided in our mandate: to support the stability, soundness, and long-term sustainability of Canada’s financial system.

That’s why financial resilience is an important consideration in the transition to becoming a federal credit union. Institutions are expected to demonstrate a strong financial position, as deficiencies in this area can create vulnerabilities for both the institution and, in certain cases, the broader financial system.

Sustained profitability cannot be achieved solely through borrowing; strong earnings foundation is important.

Our ability to recommend approval to the Minister of Finance depends, in part, on the institution’s overall financial strength at the time of application.

Our guidance and oversight help federally regulated institutions maintain sound risk management and financial resilience, supporting confidence in Canada’s financial system amid an increasingly complex and interconnected environment.

As we look ahead, OSFI will continue to engage with industry leaders, listen to feedback, and refine our processes where possible.

It is through this kind of exchange that we strengthen our approaches and ensure our respective regulatory frameworks remain responsive, consistent, and effective.

I’d like to thank CCUA for the opportunity to participate and exchange perspectives today.