DEPOSIT guarantee

Deposits guaranteed 100%

All our deposits and interest are 100% guaranteed without limit by Deposit Guarantee Corporation of Manitoba (DGCM).

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).

Deposit Guarantee Corporation of Manitoba

A Solid Record Of Deposit Protection in Manitoba.

When you save at a Manitoba credit union, your deposits are guaranteed without limit by the Deposit Guarantee Corporation of Manitoba ("the Corporation"). Since 1937, when Manitoba's first credit union opened, no person has ever lost any deposit or any interest earned at the contracted or posted rate on the deposit.

What Is The Corporation?

The Corporation is the deposit guarantor for Manitoba credit unions. Established under The Credit Unions and Caisses Populaires Act, the Corporation is required by law to guarantee deposits placed with Manitoba credit unions. The Corporation was originally established by credit unions in 1965 as a voluntary organization. Since 1970, legislation has required that every Manitoba credit union be covered by the Corporation's guarantee.

The Corporation's seven person Board is appointed by the Government of Manitoba, with daily operations administered by a Chief Executive Officer and support staff.

What Types of Accounts Are Guaranteed?

The Corporation guarantees all monies carried in any chequing or savings account at a Manitoba credit union, together with interest. Credit unions use different names and descriptions for the variety of deposit vehicles provided, but all are covered by the guarantee, however designated. The guarantee applies to accounts denominated in foreign currencies, and also to all term products of the credit union, regardless of the length of the term.

The Corporation does not guarantee any monies placed or held in shares of the credit union, nor any mutual funds or other investments placed outside the credit union.

How Does The Corporation Protect Deposits?

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

Regulatory Oversight

The Corporation ensures adherence to sound business practices by all Manitoba Credit unions.

The Corporation has comprehensive monitoring and examination programs in place to assess governance, strategic management, risk management, internal controls, and financial performance of each credit union. Any issues identified are followed up with the credit union to ensure that these are resolved to prevent or reduce any potential negative financial impact on the credit union.

Capital

Legislation requires credit unions to maintain a certain percentage of their assets as capital. This can be found on each credit union balance sheet as retained earnings and share equity. This is one measure of each credit union ability to sustain losses. Each credit union is required to have an independent annual audit of the financial statements.

Guarantee Fund

The Corporation has established a guarantee fund to provide the financial backing to the guarantee. The guarantee fund has been built up over time and is maintained on an on-going basis by mandatory quarterly assessments on every Manitoba credit union, based on the total amount of deposits with the credit union.

Daily operations of the Corporation are funded by interest earned on the investments in which the assessment monies have been placed.