What Makes Governance in Co-operatives Different?

boardroom governance

All firms are co-operatives? That can’t be right…

When I first started studying co-operatives as a graduate student, the first article I read was a piece provocatively titled “All firms are cooperatives – and so are governments.” Its author, Yale law professor Henry Hansmann, claimed exactly what you would expect from the title: that investor-owned businesses were no different in their structure than co-operatives. Continue reading

OSFI Advisory Should Provide Exemption for Credit Unions

Dionne Pohler

Dionne Pohler.* Photo credit David Stobbe / stobbephoto.ca

I grew up in a small farming village in rural Saskatchewan, where we commonly referred to the credit union as “the bank.” It was the only deposit and lending institution available in my hometown.

The words “bank” and “banking” have clear meanings in common language: Canadians use “banking” as a gerund in the same general way that people use the term “google” to mean an Internet search, or “uber” to ride share. Few understand “banking” as a term reserved exclusively for a subset of federally regulated financial institutions.

On June 30, however, the Office of the Superintendent of Financial Institutions (OSFI), the national regulator of Canada’s federally incorporated banks, issued an advisory that clarifies their interpretation of the Bank Act. The advisory aims to discourage what OSFI claims is increased use of the words “bank,” “banker,” and “banking” by “non-bank financial service providers.” Continue reading

Banking on the Upsell: Lessons for Credit Unions

Dionne Pohler

Image credit below

Across Canada and the United States, major banks are facing public scrutiny after media reports that employees feel intense pressure to mislead customers in order to meet unrealistic sales targets and avoid losing their jobs. Is this an opportunity for credit unions to show that they treat their members — their customers — differently? Continue reading