Capital Modernization Project

Capital Modernization Project Open

Launched: 28 June 2022
Closes: 1 January 2026

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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 a new Capital Rule that will replace portions of the existing Capital Requirements Regulation respecting credit unions.

It was BCFSA’s objective to proactively engage with credit unions and other stakeholders throughout the Capital Modernization Project. Engagement with key stakeholders has helped ensure that the unique characteristics of the B.C. credit union system were considered as part of the work to adopt a capital framework, based on Basel III, that will align more closely with international standards.


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.

Project Timeline

Phase 1: Planning, Development and Consultation Launch
2021 — 2022

Phase 2: Stakeholder Engagement
2022 — 2024

Phase 3: Rule Development
2024 — 2025

Phase 4: Implementation and Transition
2024 — 2025

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 Consultation Launch Webinar Recording

View PowerPoint Presentation

Read the Capital Modernization Summary Report

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.

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.

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.

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.

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.

Working Group Terms of Reference
Working Group Member List
    • 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 (Complete): Planning, Development and Consultation Launch (2021 — 2022)

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

    This consultation is now closed. BCFSA thanks everyone who provided feedback.