In recognition of the unique nature of credit unions, a statutory position of Registrar of Credit Unions was explicitly created within the Central Bank of Ireland to assume responsibility for the regulation of credit unions.
The Registry of Credit Unions is independent and is responsible for the registration, regulation and supervision of credit unions.
Under the Credit Union Act 1997, (1997 Act) the functions of the Registrar of Credit Unions are to regulate credit unions with a view to the:
- protection by each credit union of the funds of its members; and
- the maintenance of the financial stability and well-being of credit unions generally.
The Regulator's aim is to promote a financially stable credit union sector that operates in a transparent and fair manner and safeguards its members` funds.
As set out in the Central Bank's Strategic Plan 2013-2015, one of the Registry of Credit Unions' three key strategic priorities that underpin its work in the credit union sector is to develop an appropriate legislative and regulatory framework to protect the stability of individual credit unions and to allow the sector to develop.
While part of the Central Bank's role is to support the sustainable and prudent development of the sector, the Central Bank must ensure that proposed changes to the credit union business model are prudently structured and implemented.
The Central Bank informs me that it intends to invite interested parties to a series of dialogues to discuss the credit unions' business model transformation expectations. I believe that this is an appropriate time for credit unions to consider developing their business model and I am satisfied that the Regulator's engagement in this process will be crucial to the growth and development of the sector in a sustainable manner.
