Lake Cowichan and District Credit Union

Date of Incorporation: March 14, 1950
Membership: 2000
Activity: Financial services
Area Served: Lake Cowichan and District (Youbou, Lake Cowichan, Mesachie Lake, Honeymoon Bay, Caycuse)
Assets:  $22 million

Starting the Credit Union

The founders of the Lake Cowichan and District Credit Union wanted to provide financial services for local International Woodworkers'Association (IWA) union members.  The IWA represented the majority of forest industry employees in the area. The union had trouble getting the bank to offer community services, so they set up their own financial co-operative.

The original 15 members pooled their own resources to establish the credit union's initial assets. They also met with a member of the Victoria credit union to discuss how operating principles and the function of different committees.

The founding members were trying to create better lives for themselves by setting up an institution that would provide them with some financial security. The credit union continues to see itself as an alternative to banks because it offers a locally owned and controlled financial co-operative. The credit union also upholds its long-term commitment to build and maintain membership by providing quality financial services tailored to its members' needs.

The credit union went through tough times in early 1980s, linked to the downturn in forestry and the difficult provincial economy.  High inflation and interest rates made it difficult for people to maintain mortgage payments. The credit union's insurer, the credit union reserve board, provided some assistance in the form of growth strategies, supervisory assistance, personnel reorganisation and other operational changes.

Organisational Structure

The Lake Cowichan and District Credit Union remains one of the smallest credit unions in the province that is open to anyone. It has seven board members, and a staff level equivalent to 9.5 full time positions. Some staff have worked at the credit union for as many as 25 years.

The Credit Union's Annual General Meeting usually attracts 50 members. Staff know the members by name, and input takes place on an informal basis.

Community

The credit union maintains a strong commitment to its community. It offers no-fee accounts to many non-profit organisations in the community, sponsors community and sports events, offers scholarships through the high school, and funds community services such as the fire fighters.

Looking to the Future

In its early years, the community around Cowichan Lake thrived as logging and milling operations prospered. However, in 2001 the last of the large lumber mills closed due to shrinking margins and competitive pressures. The area now focuses on the raw log export market, which provides lucrative logging at reduced employment levels.

Like many Vancouver Island rural communities, the Cowichan Lake area now promotes tourism and eco-marketing to supplement its economy.  Boasting the largest lake on southern Vancouver Island and located within an hour's drive of Nanaimo and Victoria, "the lake" area's recreational potential and affordable real estate opportunities bode well for future growth.

The credit union is aware of the credit union system's drive towards mergers.  Given its sound financial footing and loyal support from the community for more than 50 years, at this point the Lake Cowichan and District Credit union expresses no great interest in being part of a merge.  Time will tell if consolidation with a larger credit union will be of interest and benefit to the members in the future.

Case Study Information

This case study was developed for a report entitled Situating Co-operatives in British Columbia - 2000 - 2001, which was prepared for the Province of B.C. (Ministry of Community Development, Co-operatives and Volunteers) by the British Columbia Institute for Co-operative Studies, University of Victoria.  To obtain the information for the case study BCICS and the co-operative (credit union) entered into a partnership agreement. BCICS is grateful to the co-op members for their contributions and time. The case study is published with the approval of the co-operative.

Researcher: Victoria Bowman, Nicole Chaland, Kyla Zachary

Date of research: 2001

Author: Nicole Chaland, Kyla Zachary

Date of writing: 2001

Editing: BCICS editorial group

Supervision: Kathleen Gabelmann, BCICS Research Co-ordinator

Ubicación