How It Works

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

Regulatory Oversight

One of the Deposit Guarantee Corporation of Manitoba’s roles is to ensure that credit unions and caisses populaires adhere to the Standards of Sound Business Practice. Further details can be found in the Regulatory Oversight section.

Capital

Legislation requires credit unions and caisses populaires to maintain a certain percentage of their assets as capital. This can be found on each credit union or caisse populaire’s balance sheet as retained earnings and share equity.  This is one measure of each credit union or caisse populaire’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 populaire failure, where assets and capital are insufficient to satisfy member deposit obligations, the Deposit Guarantee Corporation of Manitoba will take the necessary steps to protect deposits which may include:

  • Merging the credit union or caisse populaire with a viable one.
  • Dissolution of the credit union or caisse populaire’s assets and payment of deposits by the guarantee fund.