A proposed merger between two notable B.C. banks has received regulatory consent.
The two financial institutions are Vancouver City Savings Credit Union, better known as Vancity, and First Credit Union (FCU).
Once the merger is finalized, it will result in a combined total of over 585,000 members from the two institutions.
According to a release from Vancity and FCU, the merger has received regulatory consent from the BC Financial Services Authority, which allows FCU to proceed with a member vote expected to take place this fall.
Clearance has also been received from the Canadian Competition Bureau, as indicated in the release, in the form of a “no action letter.”
The only thing left to finalize the merger is approval from FCU members.
“The proposed merger is a strategic, values-driven partnership driven by a shared vision to preserve and enhance community cooperative banking across the province,” the release states.
The release adds that immediate cost savings isn’t the goal of this merger, but instead, establishing a scalable long-term model “with greater ability to withstand economic uncertainty.”
“This regulatory consent and clearance are a testament to the thoughtful and strategic approach both Vancity and First Credit Union have taken in planning this partnership,” Vancity President and CEO Wellington Holbrook said in a statement.
“It validates our shared belief in the future of community banking, and that this new model means we can better serve the people who count on us, support local economies and build a better world. We are excited to move forward to the member vote and to build a future where cooperative values thrive,” Holbrook adds.
Along with the nearly 600,000 members, the B.C. banks also have a combined workforce of 2,400 employees, 60 combined branches across Metro Vancouver and Vancouver Island as well as the Gulf Islands, and over $38.2 billion in assets.
“Further details regarding the proposed merger and the upcoming member vote will be communicated directly to First Credit Union members in the coming weeks.”
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