CHARLOTTETOWN, P.E.I., Canada–A merger proposal involving four credit unions in Prince Edward Island is gaining momentum, according to a new report. If successful, it would create the largest CU in Atlantic Canada.
The plan calls for merging Provincial Credit Union with Evangeline-Central Credit Union, Malpeque Bay CU, and Tignish Credit Union. The combined CU would have total assets nearing $1.1 billion, 147 staff, 10 branches, and 30,000 members.
The credit unions announced their plan to combine during the Fall of 2020 and this month are hosting a series of public meetings to get feedback from members, according to CBC.
Alfred Arsenault, CEO of the Evangeline Central Credit Union, told CBC the merger would increase efficiencies for staff and expand products for members, making it more competitive with banks.
"That's the desire that by becoming more efficient and effective, we should be in a position to be able to be a lot more competitive when it comes to either rates or even service charges,” Arsenault was quoted as saying. “So, that is definitely one of our objectives as a new credit union."
Members will have a chance to vote on the merger at the end of the month. The deal needs approval from two-thirds of members to go ahead and would take effect Oct. 1 if approved, CBC reported.