
Caisse Populaire
Headquartered in Toronto, Ontario, Canadian Imperial Bank of Commerce (CIBC) was formed in 1961, resulting from the largest financial services merger in Canadian history, when Canadian Bank of Commerce and the Imperial Bank of Canada joined forces. 3. The Bank of Montreal 4. Canadian Imperial Bank of Commerce 5. The Bank of Nova Scotia (Scotiabank) 6. Toronto Dominion Bank (TD) Although credit unions may generate income, rather than returning any profits to a minority of executives, these institutions fund projects and services that generally benefit the communities in which their members live. Caisses populaires stand in stark contrast to Canada's Big Six Banks: 1. The Royal Bank of Canada (commonly known as RBC) operates as a diversified financial services company, along with its subsidiaries.

What Is Caisse Populaire?
Caisse populaire describes a cooperative, member-owned financial institution that fulfills traditional banking roles, in addition to providing lending, insurance, and investment services. Chiefly found in the province of Quebec in Canada, caisses populaires are essentially the francophone equivalent to credit unions in the United States.



Understanding Caisse Populaire
The first caisse populaire was started in Quebec in 1900 by Alphonse Desjardins, a journalist and civil servant. His institution was modeled after the savings and credit unions proliferating in Europe at that time, which were backed by the Catholic church, whose support bolstered their popularity.
The vast majority of the approximately one thousand caisses populaires in Canada are located in Quebec. Most caisses populaires seek deposits from individuals with commonalities such as similar ethnic groups or geographic communities.
Although structured differently, caisses populaires and banks both provide commercial borrowing and lending services. But due to the fact that caisses populaires boast a sharper local focus, their services tend to be more personalized.
Caisses Populaires and Credit Unions
As stated, caisses populaires are fundamentally similar to credit unions, in that members pool their money or buy shares, thus enabling these institutions to provide loans, demand deposit accounts, and other financial offerings.
Although credit unions may generate income, rather than returning any profits to a minority of executives, these institutions fund projects and services that generally benefit the communities in which their members live.
Caisse Populaire and Big 6 Banks
Caisses populaires stand in stark contrast to Canada's Big Six Banks:
- The National Bank of Canada
- Royal Bank
- The Bank of Montreal
- Canadian Imperial Bank of Commerce
- The Bank of Nova Scotia (Scotiabank)
- Toronto Dominion Bank (TD)
These banks are broadly defined by the following facts:
Despite their advantages, caisses populaires cannot offer the same volume of funding as banks, which ultimately restricts the sizes of their customer bases.
Related terms:
Bay Street
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The Big 5 Banks in Canada
The Big Five Banks is a term to describe the five largest banks in Canada: Royal Bank, The Bank of Montreal, Canadian Imperial Bank of Commerce, The Bank of Nova Scotia and TD Canada Trust. read more
What Is the Big Six Banks?
The big six banks is a term used in Canada to describe the National Bank of Canada, Royal Bank, the Bank of Montreal, Canadian Imperial Bank of Commerce, the Bank of Nova Scotia (Scotiabank), and Toronto Dominion Bank (TD). read more
Checking Account
A checking account is a deposit account held at a financial institution that allows deposits and withdrawals. Checking accounts are very liquid and can be accessed using checks, automated teller machines, and electronic debits, among other methods. read more
Credit Union
A credit union is a member-owned financial cooperative that is created and operated by members and shares profits with owners. read more
Deposit
A deposit is both a transfer of funds to another party for safekeeping and the portion of funds used as collateral for the delivery of a good. read more
Insurance
Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies and/or perils. read more
Retail Banking
Retail banking consists of basic financial services, such as checking and savings accounts, sold to the general public via local branches. read more
Schedule II Bank
A Schedule II bank is a subsidiary of a foreign bank that is authorized to accept deposits within Canada and is regulated by the federal Bank Act. read more
Schedule I Bank
Schedule I Bank is a Canadian financial institution structure that is regulated under the Federal Bank Act. read more