Dáil Éireann Debate, Tuesday - 29 March 2022
279. Deputy Mairéad Farrell asked the Minister for Finance the amounts paid into the Credit Institutions Resolution Fund by credit unions; the amount paid out of the fund to support credit unions in each year since its inception in tabular form; and if he will make a statement on the matter. [16583/22]
View answerThe Central Bank and Credit Institutions (Resolution) Act 2011 (the “2011 Act”) established a resolution regime for credit institutions and credit unions in Ireland. The Credit Institutions Resolution Fund (“CIRF”) was established under this legislation to support resolution actions in the State, and is managed and administered by the Central Bank of Ireland.
Following the establishment of the Single Resolution Mechanism (SRM) in 2016, Credit Unions are now the only financial institutions contributing to the CIRF.
In 2019, the Department of Finance, in collaboration with the Central Bank of Ireland, issued a consultation paper on the establishment of a target level for the CIRF. Following this review it was decided that the target size of the CIRF should be set at €65 million and that this target should be met by 2025. It was also agreed that the Resolution Fund should be reviewed in 2025 and that the annual levy should be reduced to approximately €5 million per annum from 2020 to 2025.
The adjusted annual levy rate would be dependent on the movement of the asset size of the sector over the five years and whether any costs of resolution have been incurred by the Resolution Fund.
Below are the details of all amounts that have been paid into the CIRF and the amounts paid out each year since its inception.
Please note that the proceeds from both the sale of the building and amounts received under the loan book profit sale agreement as per the terms of the Newbridge Credit Union resolution have also been included in the income line.
