Credit unions lead the way in supporting the Canadian economy through community, job output and loans to SMEs
TORONTO, ON -- Canadian credit unions are pleased to announce the release of their 2016 Credit Union Community & Economic Impact Report (Report) highlighting the fact that on average, credit unions' contributions were equivalent to 5.7 per cent of pre-tax profits, well above the industry best standard of one per cent.
The Report shows that in 2015, nearly 84 per cent of credit union and caisse populaires assets were dedicated to supporting the real economy through loans to consumers and Main Street businesses, compared to 70 per cent for chartered banks.
How else are credit unions differentiating from banks? Dollar for dollar, credit unions create roughly twice as many jobs as Canada's largest banks. For every million dollar of gross output, credit unions create a total of 14.5 jobs in Canada, compared to 8.4 for banks.
In 2015, Canada's credit unions: contributed more than $56 million to local communities across Canada; added $6.5 billion to Canada's economic growth; retained $673 million in net income to support future growth and make community investments; paid $160 million in dividends and rewards to members for using credit union services (known as patronage); and paid $149 million in taxes to local, provincial and federal governments.
"Credit unions are different from other financial institutions. Profits are invested back into the community and net income is also directed toward helping local communities through financial literacy initiatives and social finance innovation," explains Martha Durdin, president and CEO, Canadian Credit Union Association. "This contribution helps communities and government invest in jobs and growth -- and local communities prosper."
Since 2008, Canada's credit unions have contributed more than $340 million to Canadian communities. In 2015 alone, credit unions gave:
$24.7 million in donations;
$16.5 million in sponsorships;
$8 million in financial services (in reduced or waived service charges) to 58,363 community organizations;
$2.8 million in donations in-kind;
$2 million through 1,951 credit union scholarships and bursaries;
$1.8 million to credit union charitable foundations; and
$440 thousand to endowment funds.
The Report is being released on International Credit Union Day, which acknowledges the authentic difference credit unions make to Canadians, their commitment to local communities, and their contributions on a national and international level. International Credit Union Day has been celebrated on the third Thursday of October since 1948.
To access the 2016 Community and Economic Impact Report, click here or visit MailFilterGateway has detected a possible fraud attempt from "ctt.marketwire.com" claiming to be www.ccua.com/publications.