Michael McGrath
Question:48 Deputy Michael McGrath asked the Minister for Finance the position regarding stress testing of the credit union sector which was due to be completed by the end of May 2011. [14777/11]
View answerThursday, 9 June 2011
Questions (49, 50, 51)
Michael McGrath
Question:49 Deputy Michael McGrath asked the Minister for Finance the position regarding the plan to underpin the solvency and viability of the credit union sector which under the revised EU-IMF deal was due to be completed by the end of May 2011. [14779/11]
View answerWritten answers
I propose to take Questions Nos. 48 and 49 together.
Under the EU/IMF Programme of Support for Ireland, stress tests on credit unions have been completed by the Central Bank. Credit unions were subjected to a detailed stress testing exercise to make an assessment of the likely impact of a given stress scenario on the capital buffers of credit unions. The purpose of this work is to provide the Central Bank with the necessary regulatory information to concentrate its supervisory focus and, where necessary, to take pre-emptive remedial action to maintain member confidence and protect the financial stability of the credit union sector. These stress test results also feed into Government policy in relation to the credit union sector.
In light of the stress tests on credit unions, I have prepared a plan to underpin the solvency and viability of undercapitalised credit unions. I intend to bring this Strategy to Government shortly.
Michael McGrath
Question:50 Deputy Michael McGrath asked the Minister for Finance the position regarding the establishment of a commission on credit unions which was due to be in place by the end of May 2011. [14780/11]
View answerAt its meeting of 31st May 2011, the Government agreed to establish a Commission on Credit Unions to review the future of the credit union movement and make recommendations in relation to the most effective regulatory structure for credit unions, taking into account their not-for-profit mandate, their volunteer ethos and community focus, while paying due regard to the need to fully protect depositors' savings and ensure financial stability. I hope to make the formal announcement regarding the establishment of the Commission by the end of this week. This announcement will include the membership of the Commission and the Terms of Reference.