Skip to main content
Normal View

Credit Union Data

Dáil Éireann Debate, Thursday - 21 July 2016

Thursday, 21 July 2016

Questions (119)

Michael McGrath

Question:

119. Deputy Michael McGrath asked the Minister for Finance the number of credit unions which have been approved and declined respectively for additional services in the past five years; the number of applications ongoing; and the length of time it takes on average from preliminary application stage to full approval. [23880/16]

View answer

Written answers

The Credit Union Act, 1997 (the 1997 Act) and the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (which set out services exempt from additional services regulations) set out the services that a credit union may provide to its members. These include loans; savings; account access by phone; account access by internet; third party payments (including EFT); ATM services; bureau de change; certain insurance services on an agency basis; group health insurance; bill payment; money transfers; standing orders; direct debits; financial counselling; PRSAs on an introduction basis and insurance on an introduction basis. Where a credit union wishes to provide services to its members, other than those services that are provided for under the 1997 Act, an application may be made to the Central Bank for approval to provide such additional services in accordance with the provisions set out in sections 48-51 of the 1997 Act. As set out in communications to the sector the Central Bank is, in principle, supportive of credit unions developing additional services. The Central Bank will consider proposals from credit unions on new additional services they wish to provide to members where the credit union can demonstrate that:

- the proposed additional service is supported by a robust business case;- the proposed additional service is not contrary to financial services legislation;- the board of directors has a sound appreciation of the nature of the additional service proposed and is fully informed of the strategic, governance, risk management, operational, financial and legal implications involved; and- systems and controls are in place to ensure any risks involved in the provision of the additional service are managed and mitigated. As set out above credit unions can apply to the Central Bank for approval to provide such additional services in line with sections 48-51 of the 1997 Act. I have been informed by the Central Bank that in the last five years, five applications for additional services have been approved, no applications have been declined and there are currently seven applications in progress. I have been further informed by the Central Bank that the timescale from preliminary application stage to full approval depends on the quality of information provided. Where the application form has been fully completed and contains or includes all of the information requested, the Central Bank endeavours to turn around the application as quickly as possible.

Top
Share