Dáil Éireann Debate, Tuesday - 26 May 2015
276. Deputy Michael McGrath asked the Minister for Finance his Department's strategy for the credit union sector and where it fits within the overall financial landscape; and if he will make a statement on the matter. [20151/15]
Amharc ar fhreagraMy role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
As I have previously stated, credit unions have a key role to play in providing access to credit and other important services in local communities throughout the country. The Government recognises this and has put in place a number of measures to ensure that credit unions can continue to provide these vital services to their members and to ensure the stability of the sector into the future. These measures include:
- the establishment of the Commission on Credit Unions;
- the publication of the Credit Union and Co-operation with Overseas Regulators Act 2012;
- the establishment of the Credit Union Restructuring Board, ReBo;
- the establishment of a stabilisation levy to support credit unions that are undercapitalised but are otherwise viable;
- the availability of €250 million for voluntary restructuring of credit unions facilitated by ReBo; and
- the availability of €250 million for resolution purposes.
Credit union strategy is a matter for credit unions themselves and is specifically provided for in Section 17 of the Credit Union and Co-operation with Overseas Regulators Act 2012.
The setting of strategy for a credit union is a function of the board of directors and Section 17 provides that this should be carried out in close co-operation with a credit union's management team.
