The General Scheme of the Credit Union Bill 2012 was approved by Government on June 26 and published on June 28 following consultation with the Commission on Credit Unions and engagement with key stakeholders. The General Scheme has been forwarded to the Office of the Attorney General for formal drafting. It is also being referred to the Oireachtas Joint Committee on Finance, Public Expenditure and Reform and to the ECB for an opinion, in accordance with EU Treaty requirements. The General Scheme which is based on recommendations set out in the Report of the Commission on Credit Unions, covers five main areas as follows:
Prudential regulation: including reserves, liquidity, lending and risk management;
Governance: dealing with the roles and responsibilities of the Chair, Board, Manager and Board Oversight Committee;
Stabilisation: provision of support to credit unions that are viable but undercapitalised;
Restructuring: restructuring via transfers, mergers and amalgamations on a voluntary, incentivised and time-bound basis;
Amendments to the Credit Union Act 1997: These are important miscellaneous amendments to deal with appeals for directions, administrative sanctions, additional services and other matters.
The Credit Union Bill 2012 is due to be published during Q3 in accordance with the structural benchmark under the EU-IMF Programme.