Dáil Éireann Debate, Wednesday - 18 September 2013
170. Deputy Andrew Doyle asked the Minister for Finance the measures being taken to ensure the future of credit unions in an area (details supplied) in County Wicklow; the current proposals he and his Department have for safeguarding the community institutions; and if he will make a statement on the matter. [37269/13]
View answerThis Government established the Commission on Credit Unions in May 2011 to 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 members’ savings and financial stability.
The Commission published its final Report in March 2012 and over sixty of its recommendations have been implemented in the Credit Union and Co-operation with Overseas Regulators Act 2012. The legislation contains measures which will reform and strengthen credit unions and deals with four broad areas namely: Prudential regulation; Governance; Restructuring, including the establishment of the Credit Union Restructuring Board (ReBo); and Stabilisation.
All sections of the Act are currently being commenced and will be aligned to the introduction of the underpinning Central Bank regulations, which will see implementation in a coherent and cohesive manner in accordance with the published Implementation Plan.
The Act introduces new functions for the Board of Directors which has responsibility for the general control and management of the credit union. These functions include setting the strategy, monitoring the implementation of the strategic plan and reviewing it on a regular basis as well as ensuring that the credit union is on a sound financial footing. This should allow a credit union to satisfy itself on its long-term viability. Where appropriate a credit union should engage with ReBo regarding restructuring options.
