TORONTO, Jan. 3, 2024 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) is taking steps to promote reasonable credit union commercial lending practices to ensure that their members are protected.
FSRA has developed Commercial Lending Guidance that establishes outcomes credit unions must achieve to manage and mitigate risks associated with commercial lending.
"Without effective risk management, commercial lending can result in major financial losses and put member deposits at risk," said FSRA's Mehrdad Rastan, Executive Vice-President, Credit Union and Insurance Prudential. "Our proposed Guidance sets out specific principles and outcomes to help ensure credit unions prudently manage their commercial lending business and manage associated risks adequately so they can continue to serve their members safely."
The guidance outlines responsibilities of a credit union's Board and Senior Management to:
- develop and maintain policies, standards and procedures for commercial lending activities
- manage and protect the systems and technology required for the activities
- manage and mitigate associated risks effectively
FSRA is consulting on this guidance for 60 days and welcomes all stakeholders to submit their feedback by March 1, 2024.
Learn More
- Consultation on FSRA's proposed Commercial Lending Guidance
- FSRA's Risk-Based Supervisory Framework for Credit Unions (RBSF-CU)
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.
FOR MEDIA INQUIRIES:
Russ Courtney
Sr. Manager of Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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