Dáil Éireann Debate, Wednesday - 23 June 2004
62 Mr. Howlin asked the Minister for Finance if he has satisfied himself with the current arrangements for the supervision of the credit union in view of ongoing reports of problems and irregularities in a number of credit unions; and if he will make a statement on the matter. [13816/04]
Amharc ar fhreagraThe Credit Union Act 1997 provides the 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 the savings of members are not put at risk. With the enactment of the Central Bank and Financial Services Authority of Ireland Act 2003 responsibility for statutory supervision of credit unions under the Credit Union Act 1997 passed from the Registrar of Friendly Societies to the Registrar of Credit Unions within the Irish Financial Services Regulatory Authority, IFSRA. The registrar states in IFSRA's recently published progress report that he has initiated a structural reform process to enhance regulatory and inspection activity in relation to credit unions, and that a systematic basis of communication with the representative associations has been agreed. The registrar further explains in the report that a key priority has been the upgrading and strengthening of the present statutory prudential supervision system by means of off-site supervision with a new quarterly reporting system due to commence soon. In addition a programme of more frequent on-site review meetings with individual credit unions has been embarked upon.
It is a matter for the registrar and IFSRA to ensure that the supervision of credit unions is both appropriate to the type of institution concerned and sufficient to the needs of consumer protection. As Minister, I am open to considering changes in legislation where these seem necessary.
