Source: The Canadian Press

Proposed legislation in Nova Scotia would allow credit unions in Atlantic Canada to merge under a centralized system.

Finance Minister Graham Steele says amendments to the Credit Union Act will allow Credit Union Central of Nova Scotia to become Atlantic Central and acquire its counterparts in New Brunswick and Prince Edward Island.

Steele says the goal is to create a stronger system through a larger and more cost-effective trade association.

Steele says the new association is contingent on similar legislation being passed in New Brunswick and P.E.I.

Credit unions in Newfoundland and Labrador are already part of the Nova Scotia central.

Bernie O’Neil, CEO of Credit Union Central of Nova Scotia, says he’s received assurances that legislation will soon be introduced in the other two provinces, allowing the transaction to close on Jan. 1.

The new Atlantic Central will serve 63 credit unions across the region consisting of 340,000 members and holding $3.5 billion in assets.