Deposit Guarantee Corporation of Manitoba

The Deposit Guarantee Corporation of Manitoba guarantees all deposits with a Manitoba Credit Union without limit.

Formed in 1965 as “The Credit Union Stabilization Fund”, the Corporation was originally created by initiative of the Manitoba Credit Union System. Since 1970, the role of DGCM has been set out by government in The Credit Unions and Caisse Populaires Act.

Deposit Guarantee is a Legal Responsibility of the Deposit Guarantee Corporation of Manitoba: Manitoba provincial law requires the Corporation to guarantee without limit all deposits with Manitoba Credit Unions. The exact wording under The Credit Unions and Caisse Populaires Act is as follows: “The purposes of a guarantee corporation are to guarantee the deposits of members of Credit Unions and to ensure and promote the development of sound financial procedures and controls to protect Credit Unions against financial losses and without limiting the generality of the foregoing, a guarantee corporations shall do such things as are necessary to enable a Credit Union for withdrawals of deposits.”

How does DGCM work? As the ultimate guarantor of your deposits, the Corporation continually monitors critical practices and procedures throughout the Manitoba Credit Union System. The Corporation staff regularly inspect and analyze lending practices, financial reserves, and operating procedures of each Credit Union in the province.

Potential problems are brought to the attention of the Credit Union Board and management.

The Corporation has authority under The Credit Unions and Caisses Populaires Act to require prompt resolution of any issues it raises with a Credit Union. The Corporation also recommends financial management and operating strategies to Credit Unions when they believe this would be beneficial. To be effective in this role, the Corporation’s policy is to employ individuals who have many years of successful work experience with Credit Unions or other financial institutions.

Due to the public interest which is protected by the Corporation (the safety of your savings), great care is taken to appoint members of the Corporation Board on the basis of their understanding of the Credit Union System or their possession of specialized skills suitable to a director’s role.

The five person Board is appointed by the Government of Manitoba with some input from the Credit Union System on possible appointees.