Dáil Éireann Debate, Tuesday - 27 March 2018
71. Deputy Michael McGrath asked the Minister for Finance the steps he is taking or plans to take to create a new strategy for the growth and development of the credit unions; and if he will make a statement on the matter. [13646/18]
Amharc ar fhreagraThe Government has a clear policy to support the strategic growth and development of credit unions delivering the comprehensive recommendations set out in the Commission on Credit Unions Report and the Credit Union Advisory Committee (CUAC) report in 2016, both of which involved extensive stakeholder engagement. CUAC remains an important advisor to me on strategic issues facing the sector.
An Implementation Group which is working to implement the seven recommendations of the CUAC report has submitted papers on long-term lending and consultation and engagement to the Central Bank and is currently drafting a paper on Tiered Regulation.
While there are challenges to returns arising from the low yield environment and low loan to asset ratios, the sector continues to show signs of improvement reflected in growth in new lending, delivering c 35% of all unsecured consumer lending in 2017, a decrease in the level of reported arrears and an increase in reserves. Total assets have increased consistently for many years and currently stand at approximately €16.8 billion.
There are other areas where support has been provided including the establishment of the Credit Union Restructuring Board (ReBo) and the availability of €250 million for voluntary restructuring of credit unions facilitated by ReBo which oversaw 82 restructuring projects involving 156 credit unions during its lifetime. These newly merged credit unions are now better positioned to harness the efficiencies of their increased scale to prudently develop products and services that their members are looking for now, and into the future.
In addition revised regulations for credit unions commenced on 1st March 2018 which make changes to the investment and liquidity requirements and allow for greater diversification of investment income, including provision for up to €700 million investment in Tier 3 Approved Housing Bodies.
This Government recognises the important role of credit unions as a volunteer co-operative movement and its priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall. The Government is determined to continue to support a strengthened and growing credit union movement. Credit unions are member owned and it is these members, with support from their representative bodies, who ultimately are responsible for setting and implementing their own individual strategic plans, with appropriate support from Government, which reflect the diverse nature of credit unions be they urban or rural, large or small, industrial or community.
