Dáil Éireann Debate, Tuesday - 26 May 2015
278. Deputy Michael McGrath asked the Minister for Finance if he will confirm, of the credit unions that had lending restrictions in place at the end of 2014, the number that had them in place at the end of each of the years from 2009 to 2013; and if he will make a statement on the matter. [20153/15]
View answerI have been informed by the Central Bank that it has been necessary to put lending restrictions in place in credit unions where there are regulatory concerns and resultant risk to members' savings.
At the end of December 2014 there were 206 credit unions that were subject to lending restrictions. The number of those 206 credit unions that were subject to lending restrictions at the end of the previous 5 years is outlined in the following table.
|
Year Ended |
Of the 206, the number of those credit unions with a lending restriction |
|
31 December 2013 |
202 |
|
31 December 2012 |
197 |
|
31 December 2011 |
189 |
|
31 December 2010 |
136 |
|
31 December 2009 |
66 |
In February 2015 the Central Bank commenced a lending restriction review initiative, whereby credit unions that are subject to a lending restriction, but are satisfied that they have made the necessary improvements and have embedded these improvements in robust risk sensitive lending practices, may apply for a review of their lending restriction. A communication has been issued to all relevant credit unions outlining the process for the review of lending restrictions and requesting them to indicate by 31 March 2015 whether they intend making an application for a review of their lending restriction or not. The closing date for receipt of applications to review lending restrictions under this initiative is 30 September 2015.
I have, on a number of occasions, highlighted the Government's recognition of the important role of credit unions as a volunteer co-operative movement in this country and also the importance of getting lending going in the economy. However, the issue of lending needs to be constructively considered in order to ensure a viable credit union sector into the future.
