Robert Troy
Question:124. Deputy Robert Troy asked the Minister for Finance his views on the fact that the Central Bank of Ireland set policy for credit unions while regulating same. [47251/19]
View answerTuesday, 19 November 2019
Questions (124)
Written answers
As the Deputy is aware, my role as Minister for Finance is to ensure the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Central Bank has statutory responsibility for the registration, regulation and supervision of credit unions in Ireland.
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.
In accordance with legislative provisions, the Central Bank invites external scrutiny of both its regulatory powers and remit, and the performance of its supervisory functions through regular formal reviews by external parties (Peer Review).
Section 32M of the Central Bank Act, 1942 states that:
At least every 4 years the Bank shall make appropriate arrangements for-
(a) another national central Bank, or
(b) another person or body certified by the Governor, after consultation with the Minister, as appropriate,
to carry out a review of the Bank’s performance of its regulatory functions.
The 2015 International Credit Union Regulators Network Review was the first review of the Central Bank's performance of its regulatory functions in relation to credit unions and represented an opportunity for the Central Bank to invite external scrutiny on the performance of its functions in relation to credit unions for the purpose of ensuring that they measure up to international standards and the expectations of sector stakeholders.
The ICURN began its second peer review of the Central Bank's performance of its regulatory functions in early 2019. The ICURN will publish a report of this review before the end of 2019.