FSRA finalizes commercial lending Guidance

Ontario’s financial services regulator (FSRA) has taken steps to promote prudent credit union lending practices to businesses and other commercial operations to ensure members are protected.

Following a consultation with the sector, FSRA has developed Commercial lending Guidance that establishes outcomes credit unions must achieve to manage and mitigate risks associated with commercial lending.

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
• manage and mitigate associated risks effectively

FSRA consulted on this guidance and wishes to thank all those who submitted their feedback.

Learn more:

• FSRA’s finalized Guidance on Commercial lending
• Summary of stakeholder comments – Commercial lending Guidance
• FSRA’s Risk-Based Supervisory Framework for Credit Unions (RBSF-CU)

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.

Learn more at www.fsrao.ca.