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

Seanad amendments Nos. 18 and 19 involve a redraft of the Bill as published. Following further consideration of the Bill, it was felt that the provisions under section 29, which propose to insert a new section 84A into the 1997 Act, would be more suitable under section 9. The latter deals with the policies, procedures and practices a credit union must have in place to ensure it is compliant with requirements imposed on it. For example, the Central Bank may make regulations imposing liquidity requirements on credit unions under section 30 of the Bill. At present, credit unions have a minimum liquidity requirement of 20%. The amendment allows the Central Bank to make regulations prescribing the operational practices, policies and procedures to be adopted by the credit unions more generally. These may include requiring credit unions to adopt monitoring procedures to ensure the 20% liquidity requirement is complied with. Regulations may also require credit unions to ensure people involved in monitoring liquidity have an understanding of the calculation of liquidity and maturity mismatches. These regulations may also deal with reporting requirements, including arrangements for reporting breaches to the board of directors of the Central Bank. A number of consequential amendments following on from amendment No. 18 were also made in the Seanad.

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