FSRA Finalizes its Guidance on Commercial
Lending
TORONTO, April 16,
2024 /CNW/ - Ontario's financial services regulator (FSRA)
has taken steps to ensure credit union members in Ontario are well protected by promoting
stronger credit union lending practices to businesses and other
commercial operations.
Following a consultation with the sector, FSRA has finalized
Commercial Lending Guidance that establishes outcomes credit unions
must achieve to manage and mitigate risks associated with
commercial lending.
"The quality of a credit union's commercial lending portfolios
is instrumental to its financial well-being, the protection of
depositors, and the ongoing ability to serve members," said
Mehrdad Rastan, Executive
Vice-President, Credit Union and Insurance Prudential at FSRA.
"This Guidance sets out specific principles and outcomes to help
ensure credit unions better manage their commercial lending
business and associated risks so they can continue to serve their
members safely."
This guidance outlines the requirements of a credit union's
Board and Senior Management and includes a credit union's
responsibility to:
- develop and maintain policies, standards and procedures for
commercial lending activities;
- manage and protect the systems and technology required for the
activities; and
- manage and mitigate associated risks effectively.
FSRA consulted on this guidance and wishes to thank all those
who submitted their feedback.
FOR MEDIA INQUIRIES:
Ashley Legassic
Acting Sr. Manager, Media Relations
Financial Services Regulatory Authority
C: 647-719-8426
Email: ashley.legassic@fsrao.ca
SOURCE Financial Services Regulatory Authority of Ontario