Dáil Éireann Debate, Thursday - 29 September 2016
80. Deputy Michael McGrath asked the Minister for Finance the amount of surplus funds credit unions have available to lend at the moment; the amount permissible under current term limits as mortgages with terms less than ten years; and if he will make a statement on the matter. [27884/16]
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.
I have been informed by the Central Bank that based on information provided by credit unions in the 30 June 2016 Prudential Returns to the Central Bank the sector has total assets of €15.6bn with €4.04bn in loans and €11.3bn in investments.
The Credit Union Act, 1997 (1997 Act) and the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (2016 Regulations) (which set out services exempt from additional services requirements) set out the services that a credit union may provide to its members.
Currently credit unions may provide mortgages to members subject to the maturity limits contained in the 2016 Regulations which set out the percentage of a credit union's loan book that can be outstanding for periods exceeding both five years and ten years, as well as limits on the maximum outstanding liability to an individual member. Under the 2016 Regulations, credit unions continue to be allowed to lend up to 30% of their loan book over five years and up to 10% of their loan book over 10 years, subject to a maximum maturity of 25 years. In addition, credit unions can apply to the Central Bank for an extension to their longer term lending limits (up to 40% of their loan book over 5 years and up to 15% of their loan book over 10 years). Approval of an extension to longer term lending limits is subject to conditions set by the Central Bank.
