The Credit Institutions Resolution Fund (the Fund) was established under Section 10(1) of the Central Bank and Credit Institutions (Resolution) Act 2011 (2011 Act).
In December 2011 the Minister contributed €250m to the Fund.
The 2011 Act sets out the purpose of the Fund as follows:
The purpose of the Fund is to provide a source of funding for the resolution of financial instability in, or an imminent serious threat to the financial stability of an authorised credit institution, and in particular-
1. To reimburse the Minister for any provision of a financial incentive pursuant to section 46;
2. To provide funds for any payment required pursuant to section 37(1), 42(5), 48 or 98;
3. With written consent of the Minister, to provide capital for a bridge-bank; and
4. To meet the Bank's expenses in discharging its functions under this Act.
To date approximately €30m has been used to support resolution actions in the credit union sector. To date levies collected from credit unions amount to €23.2m.
Separately, the Credit Union Fund was established under Section 57 of the Credit Union and Co-operation with Overseas Regulators Act 2012 (2012 Act). The purpose of the Fund is primarily to provide a source of funding for the restructuring of credit unions under the Credit Union Restructuring Board (ReBo). The Minister for Finance contributed €250 million to the Credit Union Fund. To date approximately €10.98m has been drawn from the Credit Union Fund and levies collected to date amount to approximately €2.82m.