Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

A number of amendments were made on Committee Stage in the Seanad in order to set out the principles of regulation making power in these sections by clarifying that the Central Bank may only make regulations in respect of these sections where they are necessary to protect members' savings. These sections provide for borrowings, savings, blending and investments.

Amendment No. 20 sets out the basis on which credit unions may borrow money and links it to the purposes of the credit union's objects as set out in section 8 of the Credit Union Act 1997. These include the creation of sources of credit for the mutual benefit of members, the use and control of members' savings for their mutual benefit and the improvement of the well-being and spirit of the members community.

Amendments Nos. 24 and 26 provide that the bank may only make regulations that are necessary in respect of credit union lending practices, reporting loans to the credit union and the holding of provisions for loans or categories of loans.

Amendment No. 30 inserts a test of necessity in respect of the power of the Central Bank to make regulations under this section. This provision states that the Central Bank may make regulations prescribing the investments that a credit union may invest in, including any other matter the bank considers necessary in the circumstances.

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