Terence Flanagan
Question:60. Deputy Terence Flanagan asked the Minister for Finance his views on the consolidation in the credit union sector; and if he will make a statement on the matter. [3422/14]
View answerThursday, 23 January 2014
Questions (60)
Written answers
The Report of the Commission on Credit Unions was published in March 2012. One of the principal recommendations of the Report, which was agreed by all credit union stakeholders, was the establishment of a restructuring board to facilitate and oversee the restructuring of credit unions. The Credit Union and Co-operation with Overseas Regulators Act 2012 - 2012 Act - established the Credit Union Restructuring Board -ReBo - on a statutory basis from 1 January 2013. The 2012 Act also established the Credit Union Fund and €250 million was contributed by the Government to the Fund to support the restructuring process.
The objectives of the restructuring process are to underpin the stability and long-term viability of credit unions and the sector at large and to provide an opportunity for stronger credit unions to develop a more sustainable business model. The restructuring process will be carried out on a voluntary, incentivised and time bound basis. While restructuring will not apply to all credit unions, many credit unions will be able to benefit from the advantages of restructuring such as: achieving economies of scope and scale; securing long term viability and stability; and providing opportunities to expand the range of services to members. ReBo is working towards the timetable set out in the Commission on Credit Unions Report, with a view to completing the process by the end of 2015. ReBo is continuing to interact with all credit unions to identify their willingness and suitability to engage in what is a voluntary restructuring process. A number of credit union amalgamations are already underway and indeed completed, with technical assistance from ReBo, for example the recent combination of Balbriggan, Skerries and Donabate to form Progressive Credit Union in north County Dublin.My expectation is that the pace of restructuring under ReBo will accelerate this year towards the completion of the process by the end of 2015.