Treasury: Maintaining confidence in the credit union system
Central 1’s Treasury business continues to deliver strong and consistent contributions to Central 1 earnings. In 2020, our team of experienced Treasury professionals worked through multiple periods of economic uncertainty and focused on making the right decisions to create sustainable value for Central 1, our members and clients.
As primary liquidity provider to the credit union system, Central 1 ensures we have appropriate levels of liquidity to support and maintain confidence in the credit union system. We took many important steps in 2020 to ensure Central 1’s operational resilience and that of the system.
We bolstered our balance sheet to create more short-term liquidity for Central 1. We also secured access to two Bank of Canada programs: Commercial Paper Purchase Program and Standing Term Liquidity Facility.
We facilitated approximately $5 billion of new securitization transactions as credit unions increased system liquidity levels. We also helped facilitate a member’s Insured Mortgage Purchase Program transaction of $176 million to support their liquidity management.
As credit unions actively increased their overall liquidity, we responded to our members’ needs. Central 1 developed a special deposit note, a proprietary short term investment solution that offered exceptional flexibility.
To support our Commercial Real Estate Lending clients, Central 1 offered principal and interest deferral options. Of the initial 25 borrowers that elected loan payment deferrals, one deferral participant remained at the end of the year.
From supporting our members through bolstering our balance sheet, securitization or investing in short-term special deposits, Central 1 is committed to providing our members with the expertise, products and services to ensure their success, and by extension, the financial well-being of Canadians.