Ontario Regulator Gives PACE Credit Union $400 Million Lifeline

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The Financial Services Regulatory Authority of Ontario is providing a C$500 million ($400 million) credit facility to PACE Credit Union to help backstop its deposits in a bid to protect members of the troubled lender.

In addition to the financial support, the FSRA is allowing PACE a variance in its capital requirements after being advised that the credit union’s regulatory capital as of Dec. 31 failed to meet mandated levels, according to a letter from the regulator to the institution’s members dated Monday.

PACE has “strong liquid financial resources” but the credit facility is being provided to give members confidence that the institution has “more than adequate financial resources to continue operations and pay depositors,” according to the letter.

“We want PACE members to know they can continue to rely on their credit union without concerns about the safety or availability of their insured deposits,” the FSRA said in the letter.

A PACE representative couldn’t immediately be reached Tuesday for comment.

PACE, which is based in Vaughan, Ontario, has 15 locations and more than 40,000 members holding more than C$1 billion in assets, according to its website. The firm was placed into administration by FSRA’s predecessor, the Deposite Insurance Corp. of Ontario, in September 2018 to protect members from failed board governance and misconduct by some executives, FSRA said.

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