Tuesday, 19 November 2019

Ceisteanna (122)

Robert Troy

Ceist:

122. Deputy Robert Troy asked the Minister for Finance when credit unions will be able to invest into the social housing fund. [47249/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

In 2017, the Central Bank undertook a review of the investment framework for credit unions. On 1 February 2018, the Central Bank published the feedback statement on CP109 and amending investment and liquidity regulations for credit unions. These amending regulations have been applicable to credit unions since 1 March 2018. Under these regulations, credit unions are permitted to invest in a range of specified investment classes, which includes ‘Investments in Tier 3 Approved Housing Bodies (AHB)s’.

Regulations permitting this investment class commenced on 1 March 2018. Since this date, credit unions have been permitted to invest in regulated investment vehicles where the underlying investments of the regulated investment vehicle are investments in Tier 3 Approved Housing Bodies in for the provision of social housing. The Regulations require that investments by credit unions in Tier 3 AHBs must be made through a regulated investment vehicle. The maximum permitted investment amount per credit union is 50% of a credit unions regulatory reserves where a credit union has total assets of at least €100 million and 25% of a credit unions regulatory reserves for all other credit unions. These limits may facilitate a combined sector investment in Tier 3 AHBs of close to €700 million.

As such the Government and the Central Bank have fulfilled their role and it is now up to both the credit union and social housing sectors themselves to progress and develop any specific funding mechanisms. Notwithstanding the above, my Department will continue to engage with the credit union movement on appropriate mechanisms for them to establish a vehicle to invest in approved housing bodies.