The Steinbach Credit Union, along with credit unions across Canada, have been ordered to stop using the terms 'bank', 'banker', and 'banking'.

That decision was announced on June 30 by the Office of the Superintendent of Financial Institutions (OSFI).

The federal regulator has decided to begin enforcing the country's Bank Act, which bans trust and loan companies, and unregulated financial service providers from using the terms. Under the OSFI’s strict interpretation of the federal Act, any credit union that continues to use those terms could be criminally charged

SCU Chief Executive Officer Glenn Friesen says the announcement was very disappointing and ridiculous, adding he feels it lacks common sense. He says these terms are common verbs people use to describe the services provided by financial institutions, including credit unions.

"Steinbach Credit Union has been around for 75 years and it's a common verb used, banking, I do my banking at the Steinbach Credit Union," notes Friesen. "We do the same things as banks do. We take deposits, we do cheque clearing, we do payments, we do loans, and wealth management. Everyone calls that banking. Give me another word that says the same thing."

Friesen says, under the Bank Act, they have been given a year-and-a-half to transition and change their brochures, web pages, signs, etc. He adds this change has been estimated at $80-million for credit unions across Canada. 

He notes they are trying to fight this change by lobbying the federal government.

"Right now we're doing a campaign. We're going to be talking to our local MP's, get our point across. I've talked to our local MP here, Ted Falk, he's definitely in support of this. So, we'll put pressure on them and hopefully, enough people will put pressure on them to say this is just ridiculous, and they have better things to do with their time."