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Financial Services Regulation.

Dáil Éireann Debate, Tuesday - 2 March 2004

Tuesday, 2 March 2004

Ceisteanna (153)

John Perry

Ceist:

233 Mr. Perry asked the Minister for Finance the plans that are in place to lift the restrictions posed on credit union lending by the Credit Union Act 1997, especially in respect to the ration of moneys to be lent and the timescale over which moneys can be lent; his views on the fact that the Government could also be of assistance to the movement in these areas by responding speedily to the requests made to the registrar of credit unions; and if he will make a statement on the matter. [6664/04]

Amharc ar fhreagra

Freagraí scríofa

The Credit Union Act 1997 provides a carefully balanced framework for the regulation of credit unions in the interests of their members. To this end, it lays down various restrictions designed to ensure that lending by credit unions is on a prudent basis such that the savings of members are not put at risk.

I understand that the Irish League of Credit Unions has been in dialogue with the Registrar of Credit Unions on proposals to relax the restrictions in the Act so as to facilitate longer-term lending by credit unions. I understand that, to date, the registrar, who now operates within the framework of the single financial regulator, has not been persuaded that such a significant change in the rules governing credit unions would be prudent and in the best interests of credit union members. Should the financial regulator advise me that change was prudent and desirable, I would consider that advice carefully in the context of my overall responsibility for the regulatory system governing credit unions.

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