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Credit Unions

Dáil Éireann Debate, Thursday - 26 November 2020

Thursday, 26 November 2020

Questions (232)

Richard Boyd Barrett

Question:

232. Deputy Richard Boyd Barrett asked the Minister for Finance if the €25,000 limit that credit unions are being required to impose on deposits will be reviewed; and if he will make a statement on the matter. [39501/20]

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Written answers

I have been informed by the Central Bank that it has not imposed a €25,000 savings or deposit limit on credit unions.

The Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (the 2016 Regulations) set an individual savings limit of €100,000 that applies on a per member basis. Individual credit unions could apply to the Central Bank to retain individual members’ savings in excess of €100,000, which were held at commencement of the 2016 Regulations. In addition, on an ongoing basis, credit unions with total assets in excess of €100 million can apply to the Central Bank for approval to increase individual member savings in excess of €100,000. The Central Bank undertook a review of the continued appropriateness of the €100,000 individual member’s savings limit during 2020 which concluded that the limit remains appropriate.

Separate to the limits set out by the Central Bank in the 2016 Regulations, individual credit unions may decide to set individual savings limits/caps, which are below the €100,000 limit contained in the 2016 Regulations, in order to take account of their own specific business requirements and strategy. It is a commercial decision for any individual credit union to put in place any limits on the level of member savings or to decide to return some member savings where they are of the view that this will best support the ongoing prudent operation of their credit union for their members.

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