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

Section 30(3) indicates:

The Bank may prescribe the minimum liquidity requirements that a credit union is required to maintain as well as conditions on the application of the minimum liquidity requirements. Regulations made by the Bank for the purpose of this section may deal with other matters

One of the recommendations from the commission was on this idea of a tiered regulatory approach and the objective was that due regard would have to be given to the size of credit unions. As I stated in my reply, a one size fits all approach is not taken on the argument that they are all the same size and all have the same deposit ratios and lending rations because it is not realistic. To have regard to that recommendation from the commission, the power is now being given to the Bank to prescribe the liquidity requirements.

It is important that amendment No. 126 ensures that the proportion of liquid assets to be kept by a credit union will take account of the nature, scale and complexity of a credit union because it allows the Central Bank to do it in a scaled way having regard to that recommendation made by the commission. This is something that will be useful for credit unions, large and small, because the Central Bank must have regard to the liquidity ratio and principles because of the size and scale of credit unions.