DEPOSIT GUARANTEE CORPORATION OF MANITOBA

100% Guaranteed Deposits

All deposits in any Manitoba credit union or caisse populaire are guaranteed, without limit. We ensure that Manitoba credit unions and caisses populaires operate under sound business practices.

ABOUT US

Our Role

Provide a 100% guarantee of deposits held with Manitoba credit unions and the caisse.

Ensure that credit unions and the caisse operate according to standards of sound business practice and that Credit Union Central of Manitoba operates according to prudential standards.

Monitor credit union, caisse, and Credit Union Central of Manitoba’s performance and implement appropriate actions to reduce risk.

Ensure compliance with The Manitoba Credit Unions and Caisses Populaires Act.

History

The Deposit Guarantee Corporation of Manitoba (DGCM) commenced operations in 1965 as the Credit Union Stabilization Fund guaranteeing deposits in credit unions and caisses populaires on a voluntary basis.

In 1968, legislation was enacted which enabled caisses populaires to form their own stabilization fund and required both credit unions and caisses populaires to be covered by a ‘deposit guarantee corporation’. The Credit Union Stabilization Fund and “le Fonds de sécurité” were both formed.

In 1994 the Credit Union Stabilization Fund was renamed and became the Credit Union Deposit Guarantee Corporation. “Le Fonds de sécurité” was later renamed “La Société d’assurance-dépôts des caisses populaires du Manitoba”.

In 2011, the Credit Union Deposit Guarantee Corporation and “La Société d’assurance-dépôts des caisses populaires du Manitoba” were amalgamated and renamed the Deposit Guarantee Corporation of Manitoba, once again guaranteeing deposits in both credit unions and the caisse.

In 2022, the Deposit Guarantee Corporation of Manitoba was given responsibility to oversee Credit Union Central of Manitoba. Previously, Credit Union Central of Manitoba had been regulated jointly by the federal government (OSFI) and Financial Institutions Regulation Branch (FIRB).

Corporate Governance

DGCM is governed by a Board of not less than five and not more than seven Directors appointed by the Lieutenant Governor in Council of Manitoba of the Province of Manitoba, as well as the Deputy Minister of Finance (or designate) as a non-voting member.

The Board of Directors together with the Chief Executive Officer and Senior Management ensures the effective operation of the organization.

DEPOSIT GUARANTEE

How Deposits are Protected

DGCM ensures that credit unions and the caisse operate under sound business practices and maintain quality assets, thereby minimizing the risk of loss. Legislation requires credit unions and the caisse to maintain minimum levels of capital and liquidity.

DGCM maintains a fund to guarantee deposits. Credit unions and the caisse pay a quarterly assessment to maintain the Guarantee Fund at an acceptable level.

What's Covered/What's Not

DGCM provides an unlimited guarantee of all deposits in a Manitoba credit union or caisse including accrued interest to date of payout.

This guarantee covers all deposits including chequing and savings accounts, term deposits/GICs (including those with terms exceeding five years), registered deposits, and foreign currency deposits. The guarantee is not affected by a credit union or a caisse changing its name, amalgamating, or entering into similar agreements.

The guarantee does not cover non-deposit instruments such as members’ share capital (e.g. common, surplus, or preferred shares), mutual funds, and self-administered RRSPs that are not deposits (e.g. equity shares and mutual funds).

Layers of Protection

There are several levels of protection in place to safeguard member deposits in Manitoba credit unions and the caisse.

Regulatory Oversight
The Credit Union and Caisse Populaires Act authorizes DGCM to issue Standards of Sound Business Practice governing credit unions and the caisse, and Prudential Standards governing Credit Union Central of Manitoba.

DGCM ensures credit unions and the caisse operate safely and soundly through approaches that include:

Development and maintenance of the Standards of Sound Business Practice and other regulatory policies and guidelines
Oversight practices such as regular monitoring and examinations to ensure credit unions and the caisse are adhering to the Standards of Sound Business Practice
Preventive guidance that strengthens the knowledge and skills of credit union and caisse boards and management

DGCM ensures Credit Union Central of Manitoba operates safely and soundly through approaches that include:

Development and maintenance of Prudential Standards and other regulatory policies and guidelines
Oversight practices such as regular monitoring and examinations to ensure Credit Union Central of Manitoba is adhering to Prudential Standards which focus on Credit Union Central of Manitoba’s role as the manager of the credit union and caisse liquidity reserves.

Capital
Legislation requires credit unions and the caisse to maintain a certain percentage of their assets as capital. This can be found on each credit union or caisse’s balance sheet as retained earnings and share equity. This is one measure of each credit union or caisse’s ability to sustain losses.

Guarantee Fund
A guarantee fund is maintained to guarantee deposits. In the unlikely event of a credit union or caisse failure, where assets and capital are insufficient to satisfy member deposit obligations, DGCM will take the necessary steps to protect deposits which may include:

Merging the credit union or caisse with a viable one
Dissolution of the credit union or caisse and payment of deposits by the Guarantee Fund

Guarantee Fund Management

DGCM levies credit unions and the caisse based on member deposits to ensure the Guarantee Fund is maintained at an appropriate level.

Investment of the Guarantee Fund
DGCM manages the Guarantee Fund under a conservative investment policy with the following objectives in order of priority:

Protect the Guarantee Fund from loss of principal
Ensure sufficient liquidity to satisfy DGCM’s legislated mandate
Maximize investment returns within the confines of the investment policy, given the level of risk deemed appropriate by the Board of Directors

COVERED INSTITUTIONS

Physical Institutions

Access Credit Union
Amaranth Credit Union
Assiniboine Credit Union
Belgian-Alliance Credit Union
Caisse Financial Group
Cambrian Credit Union
Carpathia Credit Union
Casera Credit Union
Compass Credit Union
Flin Flon Credit Union
Fusion Credit Union
Me-Dian Credit Union
Niverville Credit Union
Rosenort Credit Union
Steinbach Credit Union
Stride Credit Union
Sunrise Credit Union
Swan Valley Credit Union
Westoba Credit Union
Winnipeg Police Credit Union

Virtual Institutions

AcceleRate Financial (Access)
Achieva Financial (Cambrian)
Casera Financial (Casera)
Hubert Financial (Access)
Ideal Savings (Carpathia)
MAXA Financial (Westoba)
Outlook Financial (Assiniboine)

FREQUENTLY ASKED QUESTIONS (FAQs)

How are my deposits protected?
DGCM ensures that credit unions and the caisse operate under sound business practices and maintain quality assets, thereby minimizing the risk of loss. Legislation requires credit unions and the caisse to maintain minimum levels of capital and liquidity. DGCM maintains a fund to guarantee deposits. Credit unions and the caisse pay a quarterly assessment to maintain the Guarantee Fund at an acceptable level.

Are deposits in Manitoba credit unions and the caisse 100% guaranteed?
Yes. DGCM guarantees the repayment of all deposits with Manitoba credit unions and the caisse, including accrued interest to the date of payout. It is not affected by a credit union or caisse changing its name, amalgamating, or entering into similar types of arrangements.

Is this guarantee the same as the banks’ $100,000 insurance?
No. This guarantee is provided by DGCM and only applies to Manitoba credit unions and the caisse. Deposits placed with federally regulated financial institutions are insured by the Canada Deposit Insurance Corporation (CDIC). Please contact CDIC for information on their insurance coverage at www.cdic.ca.

Are my deposits guaranteed if I reside outside of Manitoba?
Yes. All deposits with Manitoba credit unions and the caisse are covered by DGCM, regardless of where the depositor resides.

What is not covered by the guarantee?
The guarantee does not cover non-deposit instruments, examples of which include common shares, surplus shares, preferred shares, mutual funds, and self-administered RRSPs that are not deposits (e.g. equity shares, mutual funds).

Is DGCM part of the Manitoba Government?
DGCM is a Government Agency, established under The Manitoba Credit Unions and Caisses Populaires Act. A Board of Directors, appointed by the Lieutenant Governor in Council of Manitoba, oversees DGCM.

Does the Government of Manitoba also cover deposits?
No. There is no legislated requirement for the Manitoba government to guarantee deposits.

How will I get my money if a credit union or caisse fails?
In the unlikely event of a credit union or caisse failure, depositors will not be required to file a claim. They will be contacted at their last known address to confirm the deposit and will be advised of the payment details and date.

PUBLICATIONS

The Corporation’s Annual Reports for the past five years are available for download in PDF format. Please ensure that you have Acrobat X software that can read PDF files. Adobe’s website has a document reader available as a free download at www.adobe.com