Dáil Éireann Debate, Wednesday - 20 November 2013
30. Deputy Michael McGrath asked the Minister for Finance the timetable he envisages for restructuring of credit unions in financial difficulty; the way the sector can be supported to ensure it can continue to make a significant contribution to social and economic wellbeing here; and if he will make a statement on the matter. [49204/13]
Amharc ar fhreagraThe Credit Union and Co-operation with Overseas Regulators Act 2012 provides the statutory basis for the restructuring of credit unions and placed the Credit Union Restructuring Board - ReBo - on a statutory footing from 1 January 2013. ReBo will oversee and facilitate restructuring on a voluntary, incentivised and time-bound basis, and is working towards the timetable set out in the Commission on Credit Unions Report, which sees the process being completed by the end of 2015. The Government has made available €250 million in the Credit Union Fund for the voluntary restructuring of credit unions.
The Commission on Credit Unions, in its Report, made a number of recommendations regarding the future of credit unions. These include the important role credit unions will play in financial inclusion and social lending and also sets out a new business model which is being implemented in the tiered regulatory approach and will see some credit unions opting to provide additional services. The core objective of these reforms is to provide the most effective regulatory structure for credit unions, taking account of their not-for-profit mandate, their volunteer ethos and community focus, while paying due regard to the need to fully protect members’ savings and financial stability.
The Government has accepted fully the Commission on Credit Union’s Report and the recommendations are currently being rolled-out under the Credit Union and Co-operation with Overseas Regulators Act 2012.
