The establishment of Khalsa Credit Union in February 1986, is testament to the foresight, courage and conviction of the founders who banded together, in the face of considerable adversity, to create an organization dedicated to the financial needs of Sikh people in British Columbia. In Western Canada, the economic recession of the early eighties was particularly stressful for the banking industry
and resulted in two banks going out of business and two others merging with their bigger brethren. On January 31, 1986 the Canadian dollar hit an all time low of 70.2 US cents on international money markets. In British Columbia, credit unions had been largely incorporated following World War II and the system was well entrenched by the 1980s. KCU, as a religious based, closed-bond credit union, was starting well behind the “pack” and obtaining a charter would prove to be another obstacle. Nonetheless, the pioneers persisted in their quest and, despite the 22% interest rates of recent memory, KCU was born. The weather had started to warm and some early blossoms had appeared when the 51 founders gathered to celebrate their amazing achievement. From these humble beginnings and daunting challenges, KCU grew to $1 million in assets in its first full year of operation, and reached $250 million in assets by its 25th anniversary. Today, KCU serves over 12,000 members from five branches and is ranked in the top 100 credit unions in Canada. It is also the largest financial institution owned by Sikh people in the World.
