The details of the strategy to underpin the solvency and viability of the credit union sector are set out in the agreed EU-IMF Programme. As part of this Programme the Government committed to a number of measures to underpin the solvency and viability of the credit union sector. These include the following:
- Establishment of the Commission on Credit Unions and publication of the Commission Report. The Commission reviewed the future of credit unions and made recommendations regarding 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;
- Publication of the Credit Union Bill 2012. Over sixty of the recommendations in the Commission Report were included in the Bill;
- Publication of the Credit Union and Co-operation with Overseas Regulators Act 2012. The Act implements the statutory changes recommended in the Commission’s final Report and is set out in four main parts: Prudential requirements; Governance; Stabilisation; and Restructuring;
- Introduction of a Fitness and Probity regime for credit unions;
- Introduction of payments to the Deposit Guarantee Scheme by credit unions;
- Establishment of Credit Union Fund and transfer of €250m to the Fund.
As part of each Troika mission, the European Commission, the ECB and the IMF are updated on progress achieved in the credit union sector. Progress to date includes the strengthened regulatory framework as set out in the Credit Union and Co-operation with Overseas Regulators Act 2012, the publication by the Central Bank of the Credit Union Handbook, the development of a tiered regulatory approach, the introduction of a Fitness and Probity regime for credit unions and the work of the Credit Union Restructuring Board (ReBo). In addition, we have achieved all the benchmarks set out in the EU-IMF Programme in relation to credit unions including:
EU-IMP Programme Summary
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Objective
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Achieved
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Commission on Credit Unions Final Report by end-March 2012
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Done
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Credit Union Bill published by end-September 2012
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Done
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Commencement of Fitness and Probity regime
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Done
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Commencement of Deposit Guarantee Scheme
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Done
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Credit Union and Co-operation with Overseas Regulators Act 2012
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Done
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€250m transferred into Credit Union Fund
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Done
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