The Credit Union Deposit Insurance Corporation (CUDIC), a government corporation, protects credit union members against the loss of deposits held by British Columbia credit unions. CUDIC's responsibility is to administer and operate a deposit insurance fund. The Financial Institutions Commission (FICOM) is responsible for administering CUDIC.
The fund administered by CUDIC is maintained through annual assessments paid by credit unions. CUDIC insures deposits to a maximum of $100,000 per separate deposit (as defined by regulation) per credit union.
To minimize the likelihood of claims arising against the fund and to ensure the safety of members' deposits in credit unions, the Commission has wide-ranging regulatory and supervisory powers over the operations and practices of credit unions. The Commission can require undertakings of credit unions and their directors and officers, issue cease and desist orders, remove directors and officers from office and place a credit union under its supervision.
Stabilization Central Credit Union of British Columbia was incorporated in 1989 to implement self-regulation within the provincial credit union system. Its primary purpose is to monitor credit unions and take early action to correct any identified problems. Accordingly, Stabilization Central supervises credit unions assigned to it by the Financial Institutions Commission or credit unions that voluntarily come under its supervision.
Every local credit union in BC must maintain membership in Stabilization Central as a condition of holding a business authorization. Stabilization Central is funded by its member credit unions and is directed by a board elected by or appointed from these members.