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Capital Modernization Project
Tags for 'Capital Modernization Project'
Open
Launched: 28 June 2022
Closes: 1 January 2027
BCFSA is conducting a multi-year initiative to modernize the capital framework for B.C.’s credit unions. The goals of the Capital Modernization Project are to ensure that capital adequacy requirements for credit unions continue to reflect underlying risks and, as appropriate, reflect developments in international standards and best practices. The ultimate outcome of this initiative is expected to be new Capital Rules that will replace portions of the existing Capital Requirements Regulation respecting credit unions.
It is BCFSA’s objective to proactively engage with credit unions and other stakeholders throughout the Capital Modernization Project to ensure that the unique characteristics of the B.C. credit union system were considered as part of the work to adopt a capital framework.
BCFSA’s Capital Modernization Project follows the Financial Institutions Act and Credit Union Incorporation Act Review issued in March 2018 by the Ministry of Finance, which included recommendations to adopt a Basel III-like capital framework and rules-based approach for capital standards applicable to all provincial credit unions.
As detailed in BCFSA’s Regulatory Roadmap, the Capital Modernization Project is a core focus for credit unions over the coming years.
Proposed Capital Reporting Requirements for B.C. Credit Unions
As part of the Capital Modernization project, BCFSA plans to consult on the proposed capital reporting requirements for B.C. credit unions, as outlined in a new Capital Adequacy Return (CAR). This consultation will also include updates to the Financial and Statistical Return (FSR).
We invite credit unions to attend two information sessions on April 16 and April 30, to learn more about the proposed CAR and FSR reporting requirements.
Information Session on April 16
This 45-minute session is intended for CFOs, regulatory reporting and compliance teams and will provide:
- An overview of the consultation process;
- A walkthrough of the Consultation Package;
- Details about the second information session; and
- Next steps and anticipated timelines.
Time and Registration
April 16, 2026, 11 a.m. – 11:45 a.m. PST
Register Here (will open in a new tab)Q&A Session on April 30
This 60-minute Q&A session is intended for the credit unions’ regulatory reporting and compliance teams, who will be responsible for preparing capital and financial returns, and will provide:
- A clarification of key reporting concepts and expectations;
- A discussion and opportunity to ask questions about the proposed reporting requirements and the consultation process; and
- Next steps and anticipated timelines.
To help us tailor the session, we encourage you to submit any questions in advance at the form below or by emailing us at CUCapital@bcfsa.ca.
Submit Questions (will open in a new tab)Time and Registration
April 30, 2026, 11 a.m. – 12 p.m. PST
Register Here (will open in a new tab)Capital Rules Consultation Summary Report
BCFSA has released its Capital Rules Consultation Summary Report following a public consultation on the draft Credit Union Capital Requirements Rules for B.C. credit unions. The consultation closed on January 15, 2026 and BCFSA has completed its review of the consultation feedback.
The Report summarizes the feedback received during the consultation and provides BCFSA’s responses. The feedback received generally expressed support for the proposed Capital Rules and requested clarifications concerning implementation of the proposed legislation. As noted in the Report, BCFSA will seek minor amendments to the current draft Capital Rules in some instances.
On March 31, 2026, BCFSA held a “What We Heard” information session to discuss:
- Themes of the feedback received during the consultation; and
- Next steps of the project.
For more information, please contact CUCapital@bcfsa.ca.
BCFSA values the feedback it receives during consultations and would like to thank everyone who participated.
Consultation on Capital Rules
On October 16, 2025, BCFSA released its proposed Capital Rules for consultation and public comment as part of its Capital Modernization Project to update the capital framework for B.C. credit unions. The consultation ended on January 15, 2026.
BCFSA held information sessions on October 22, 2025 and December 3, 2025.
Capital Modernization Timeline Changes
BCFSA is extending the implementation timeline for the Capital Modernization Project. We anticipate that the new Capital Modernization Rules will take effect on January 1, 2027, instead of January 1, 2026.
BCFSA Approach to Market Risk
BCFSA hosted two information sessions in the fall of 2024 to explain market risk in the banking book.
The first session, on September 18, introduced BCFSA’s planned approach to market risk. BCFSA also provided information about its upcoming data collection and scenario analysis exercise, the Quantitative Impact Study (“QIS”), which aims to provide a comprehensive view of the credit unions’ banking book exposures to market risk. A second session, on October 3, reviewed BCFSA’s planned approach and also covered the QIS exercise and provided instructions for completing the QIS template, which credit unions will use for their submissions.
If you have not yet received the three BCFSA Interest Rate Risk in the Banking Book (“IRRBB”) QIS documents, please email CUCapital@bcfsa.ca.
- View Session 1 Recording (will open in a new tab)
- View Session 2 Recording (will open in a new tab)
- View Session 1 Presentation (will open in a new tab)
- View Session 2 Presentation (will open in a new tab)
Phase 2: Stakeholder Engagement (Complete)
Capital Modernization Report and Information Session
BCFSA held an information session on June 26, 2024, in which BCFSA’s senior leaders provided an update on the Capital Modernization Project, including an overview of feedback received during the 2023 public consultation on its Capital Modernization Consultation Paper, BCFSA’s decisions, and next steps.
- View Webinar Recording (will open in a new tab)
- View Presentation (will open in a new tab)
- Read the Capital Modernization Summary Report (will open in a new tab)
Consultation on Proposed Capital Framework
From July 25 to November 6, 2023, BCFSA held a consultation on proposed changes in its Capital Modernization: Consultation Paper for B.C. Credit Unions to modernize the capital framework for B.C.’s credit unions.
B.C. credit unions and the public were asked to provide feedback on a number of discussion questions within the consultation paper.
BCFSA also held a series of information sessions for all stakeholders to learn more about the changes proposed in the consultation paper.
Session 1: Capital Modernization Project Consultation Launch
Thursday, August 3, 2023.
This webinar provided an overview of the Consultation Paper and an opportunity to learn more about the consultation process, timelines and activities.
- View Consultation Launch Webinar Recording (will open in a new tab)
- View Presentation (will open in a new tab)
Session 2: Capital Overview
Thursday, September 7, 2023.
This session focused on the regulatory capital components. BCFSA’s goal is to raise the quality and consistency of regulatory capital with an approach tailored to address the cooperative nature of the B.C. credit union system.
- View Session 2 Webinar Recording (will open in a new tab)
- View Presentation (will open in a new tab)
Session 3: Capital Buffers, Operational Risk, Leverage Ratio and Market Risk Overview
Thursday, September 14, 2023.
This session was an introduction to the capital buffers, operational risk, internationally harmonized leverage ratio and an overview of market risk.
- View Session 3 Webinar Recording (will open in a new tab)
- View Presentation (will open in a new tab)
Session 4: Credit Risk Overview
Thursday, September 21, 2023.
This session was an overview of the credit risk approach proposed in the Consultation Paper to achieve sound, risk-sensitive capital requirements that address the features of the economic landscape for B.C.’s credit unions.
- View Session 4 Webinar Recording (will open in a new tab)
- View Presentation (will open in a new tab)
Working Group Consultation
As part of BCFSA’s commitment to engaging proactively with credit unions and other stakeholders throughout the Capital Modernization Project, a diverse group of representatives from B.C. credit unions were appointed to serve as members of its Credit Union Capital Modernization Working Group (“Working Group”) following an open call for members to all B.C. regulated credit unions.
Working Group members participated in focused discussions and were invited to provide feedback and impact analysis on targeted topics.
- BlueShore Financial Credit Union
- Bulkley Valley Credit Union
- Central 1 Credit Union
- Coastal Community Credit Union
- Gulf & Fraser Fisherman’s Credit Union
- Integris Credit Union
- Interior Savings Credit Union
- Kootenay Savings Credit Union
- Nelson & District Credit Union
- Prospera Credit Union
- Revelstoke Credit Union
- Summerland & District Credit Union
- Sunshine Coast Credit Union
- Vancouver City Savings Credit Union
- Williams Lake and District Credit Union
Phase 1: Planning, Development and Consultation Launch (Complete)
To officially launch the project, BCFSA hosted an information session for all interested stakeholders on Tuesday, June 28, 2022, providing an overview of the project goals and objectives, highlighting the opportunities for stakeholder input, and responding to questions. See the session recording or presentation for more information.
How to Participate
We thank everyone who participated in the Capital Rules consultation, and
invite you to register for a “What We Heard” information session on
March 31, 2026, from 11 a.m. – 12 p.m. PST