Jack Chambers
Ceist:235. Deputy Jack Chambers asked the Minister for Finance the process for new credit union branches to be approved and licensed by the Central Bank; and if he will make a statement on the matter. [14022/17]
Amharc ar fhreagraTuesday, 21 March 2017
Ceisteanna (235)
Freagraí scríofa
The Central Bank of Ireland (Central Bank) is the sole authority with the power and responsibility for registering credit unions in Ireland in accordance with the provisions of the Credit Union Act 1997 (1997 Act). Under the 1997 Act, credit unions are registered rather than licensed. The Central Bank has an application process, along with supporting documentation, for any potential applicant wishing to register a credit union. The 'Checklist for completing and submitting Credit Union Registration Applications' which is available on request from the Central Bank, must be completed by applicants during the application process. It seeks information on all criteria credit unions are required to comply with on an on-going basis including:
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Criteria Credit Unions are required to comply with: |
Criteria Credit Unions are required to comply with: |
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- common bond and membership |
- internal audit |
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- proposed rules of the credit union |
- financial control |
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- objectives in line with the credit union objectives set out in the 1997 Act |
- anti-money laundering |
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- strategic plan including proposed activities (products and services) to be provided to members and proposed funding strategy |
- conflicts of interest |
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- governance arrangements and oversight |
- reserves and liquidity |
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- risk management |
- lending and investments |
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- compliance |
- systems and control/policies and procedures |
The comprehensive application process also requires details of the initial reserves the credit union will hold and it must be demonstrated that those initial reserves will be adequate to support the credit union. In addition, the applicant is required to provide five year projected financial statements, as well as reserves and liquidity projections.
In relation to the board of directors and management, information is also sought on the following requirements:
- all persons proposed to perform Controlled Functions, which include the board of directors and management, must meet the Central Bank's Fitness and Probity requirements for credit unions. This includes obtaining approval by the Central Bank of the chair of the board of directors and the manager of the credit union prior to the individuals concerned taking up these positions.
- the governance framework in the 1997 Act which sets out requirements for the board of directors and certain management positions.
Conditions may be imposed by the Central Bank on a credit union's registration.
Any applicant interested in registering a credit union can contact the Registry of Credit Unions at the Central Bank.