Catherine Murphy (Kildare North, Independent)
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Question 101: To ask the Minister for Finance the options available to the credit union movement in relation to the ratio of loan losses and the risk to the viability of some credit unions; the solutions he is considering; the details of same; and if he will make a statement on the matter. [16466/11]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that under the EU/IMF Programme of Support for Ireland, stress tests and loan book reviews on credit unions have been completed by the Central Bank of Ireland. The purpose of this work was to provide the Central Bank of Ireland with the necessary regulatory information to concentrate its supervisory focus and, where necessary, to take pre-emptive remedial action to maintain member confidence and protect the financial stability of the credit union sector. The Registrar of Credit Unions at the Central Bank is working closely with those credit unions that require particular attention at this time. More broadly, and also as part of the EU/IMF Programme, I have prepared a strategy to enhance the viability of credit unions. I intend to bring this strategy to Government shortly after which time it may be published.

The Commission on Credit Unions was established by Government on 31 May 2011 and met for the first time on 20 June 2011. The Commission will review the future of the credit union movement and make recommendations in relation to the most effective regulatory structure for credit unions. In carrying out its work, the Commission will take into account credit unions' not-for-profit mandate, their volunteer ethos and community focus, while paying due regard to the need to fully protect depositors' savings and financial stability. I have also asked the Commission on Credit Unions to examine the Strategy and make recommendations to me as Minister for Finance regarding any relevant proposals.