Oireachtas Joint and Select Committees
Wednesday, 16 December 2015
Joint Oireachtas Committee on Finance, Public Expenditure and Reform
Credit Union Sector: Discussion (Resumed)
2:30 pm
Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source
On the Central Bank's 10% of capital-to-total-asset requirement, can the registrar explain where the 10% comes from? What is the rationale for 10%? Why was it not set at a lower, or indeed higher, level? Where is the analysis in this regard? I understand that it has been said previously that the World Council of Credit Unions has been used as a reference point, in case Ms McKiernan wants to mention that, but the council disputes this and states that the asset ratio over 70% requires a 10% risk capital element. The registry has no risk weighted at all. Is it the case that this is another blunt instrument from the registry to impose on credit unions?
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