Credit unions

Canada's credit unions and caisses populaires have competed with chartered banks for many years. These ‘people's banks’ are based on cooperative principles developed in Europe in the 1800s.

Alphonse Desjardins established the first caisse populaire in Lévis, Quebec in 1900. The movement eventually spread across North America. One hundred years later, credit unions and caisses populaires are the most common financial institutions in Canada.

By the end of 2002, a total of 3,608 cooperative institutions provided member services. Most serve certain areas, particularly small towns; others are used exclusively by members of an association or employees of a certain company. In many small communities across Canada, the local credit union, or 'caisse pop,' is the only financial institution.

The caisse populaire network is a particularly big player in Quebec. In British Columbia, some credit unions rival the banks in size, and one has even become a chartered bank.

Next to the chartered banks, credit unions and caisses populaires are the most important sources of residential mortgages in Canada. At the end of 2002, they held $77 billion in mortgages, representing 47% of their asset base.