Robert Troy
Question:121. Deputy Robert Troy asked the Minister for Finance his views on the consultation process between Central Bank of Ireland and the credit unions. [47248/19]
View answerTuesday, 19 November 2019
Questions (121)
Written answers
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Under Section 84 of the Credit union Act, 1997 the functions of the Central Bank are to administer the system of regulation and supervision of credit unions with a view to the:
- Protection by each credit union of the funds of its members; and
- Maintenance of the financial stability and well-being of credit unions generally.
In March 2012, the Report of the Commission on Credit Unions made a number of recommendations regarding the strengthening of the regulatory framework for credit unions and also recommended that regulation making powers be delegated to the Central Bank.
In order to increase transparency and confidence in the regulation making process, consultation arrangements are provided for in Section 84A(2) of the 1997 Act, as amended by the Credit Union and Co-Operation with Overseas Regulators Act 2012. Under this section the Central Bank, before making regulations, is required to consult with:
-The Minister for Finance and the Credit Union Advisory Committee,
- Any other body that appears to the Bank to have expertise or knowledge of credit unions generally, and
- Any other body that the Bank considers appropriate to consult in the circumstances.
In additional to statutory consultation required under section 84, as outlined in the Consultation Protocol for Credit Unions, published by the Central Bank in 2012 (and available on its website), the Central Bank consults on new regulations that will, in the view of the Central Bank, potentially have a significant impact on the business of credit unions.
This process involves the publication of a consultation paper outlining proposed changes and consideration of submissions received. Following completion of the statutory consultation process referred to above the Central Bank publishes a feedback statement providing an overview of the feedback received during consultation and the Central Bank’s responses highlighting where changes are being made to proposals. Currently, the Central Bank also publishes all submissions received on its website.