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

Amendments Nos. 20 and 21 involve a redraft of the Bill as published. Following further consideration, it was felt that the provisions in section 29, which proposed to insert a new section 84A in the 1997 Act would be more suitable under section 9. The section deals with the policies, procedures and practices that a credit union must have in place to ensure it is in compliance with the requirements imposed on it. For example, the Central Bank may make regulations imposing liquidity requirements on credit unions under section 30. Currently, credit unions have a minimum liquidity requirement of 20%. The amendment allows the Central Bank to make regulations prescribing the operational practices, policies, procedures, etc., to be adopted by credit unions more generally. These may include requiring them to adopt monitoring procedures to ensure the 20% liquidity requirement is complied with. Regulations may also require them to ensure people involved in monitoring liquidity have an understanding of the calculation of liquidity and maturity mismatches. These requirements may also deal with reporting requirements, including arrangements for reporting breaches to the board of directors of the Central Bank.