Dáil Éireann Debate, Tuesday - 12 December 2017
123. Deputy Noel Rock asked the Minister for Finance his plans to increase the cap on €60,000 savings within a credit union to assist persons saving for deposits for properties; and if he will make a statement on the matter. [52764/17]
Amharc ar fhreagraI can advise the Deputy that the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (the Regulations) came into effect on 1 January 2016 following commencement of the remaining sections of the Credit Unions and Co-operation with Overseas Regulators Act 2012 which provided regulation making powers to the Central Bank.
These Regulations set out an individual member savings limit of €100,000 and also provided that credit unions could apply to the Central Bank to retain individual members’ savings in excess of €100,000, which were held at commencement of the Regulations and that Credit unions with total assets in excess of €100 million could apply to the Central Bank for approval to increase individual member savings in excess of €100,000. Some credit unions may have decided themselves to apply savings limits below €100,000.
The Central Bank developed application processes to facilitate credit unions in seeking the approvals outlined above. As provided for in the Regulations, in order for approval to be granted an applicant credit union must demonstrate that the granting of such approval is consistent with the adequate protection of the savings of members and effective and proportionate having regard to the nature, scale and complexity of the credit union. Applications to increase savings in excess of €100,000 will be accepted on an ongoing basis.
In its feedback statement to CP88 Consultation on Regulations for Credit Unions on commencement of the remaining sections of the 2012 Act the Central Bank committed to undertaking a review of the continued appropriateness of the savings limit once the impact of the restructuring of the sector, currently underway, can be assessed. This review will also assess if developments have emerged in the credit union business model which may warrant consideration of any amendments to the €100,000 limit for some credit unions. It is envisaged that such a review would be commenced within three years of the introduction of the regulations.
