Basic HTML Version
100
101
CANADIAN INDUSTRY ONLINE - JUNE 2012
provides consumers, corporations,
governments and institutions with a
broad range of financial products and
services, including consumer banking
and credit, corporate and investment
banking, securities brokerage, transac-
tion services, and wealth management.
COOPERATIVES ARE SOLVENT,
PROFITABLE AND GROWING
MONTREAL, June 13, 2012 /CNW
Telbec/
- The Autorité des marchés fi-
nanciers (AMF) has published the
tabled today in the Québec Na-
tional Assembly. The report presents a
portrait of financial services coopera-
tives carrying on business in Québec
and their financial condition.
The report confirms the importance
and soundness of cooperatives in Qué-
bec through the presence of 402 coop-
eratives affiliated with the Desjardins
Group and the Caisse des Mutuellistes
Épargne et Crédit. During the 2011 fis-
cal year, financial services cooperatives
overall posted a satisfactory increase in
surplus earnings after taxes and before
member dividends. For the Desjardins
Group, affiliated cooperatives signifi-
cantly contributed to its surplus earn-
ings.
In terms of assets, the size of coopera-
tives has increased overall over the
past few years. This phenomenon,
combined with several mergers (23
in 2010 and 21 in 2011), has led to the
emergence of credit unions with con-
siderable clout.
Cooperatives are still among the key
financial players in Québec’s economy,
particularly in the personal deposits
market. In addition, based on market
share, cooperatives are the type of de-
posit institution most used by Que-
beckers.
For all these reasons, the AMF keeps
a close watch on cooperatives, in par-
ticular by overseeing the application
of its guidelines. The purpose of the
guidelines is to ensure compliance
with solvency and capital adequacy
requirements as well as to maintain
sound and prudent management prac-
tices.
Solvency and capital adequacy are as-
sessed using capital ratios set forth in
the Basel II accord. In Québec, financial
services cooperatives boast greater
ratios than that of the industry median
(Canadian banks) and high-quality
capital.
The AMF is adapting the regulation
of financial services cooperatives by
updating its guidelines and anticipat-
ing the impact of the new capitaliza-
tion rules which will be introduced by
the Basel III accords. The guidelines
published by the AMF are available
by clicking on the
under the Deposit
Institutions menu.
For more information about financial
services cooperatives in Québec, please
consult the
(in French
only).
The Autorité des marchés finan-
ciers (AMF) is the regulatory and
oversight body for Québec›s fi-
nancial sector.
NEWS