Maureen O'Sullivan (Dublin Central, Independent)
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Question 126: To ask the Minister for Finance when he expects the report from the Commission on Credit Unions; and his views on the restrictions the Financial Regulator is placing on lending which is causing severe difficulties for members of credit unions in some communities who may be forced to turn to money-lenders. [26219/11]

Michael Noonan (Limerick City, Fine Gael)
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The Commission on Credit Unions is due to submit its interim report to me, as Minister for Finance, by 30 September 2011. This report will make initial recommendations on strengthening the regulatory framework for credit unions. The Commission will submit its final report to me by 31 March 2012.

On the issue of lending restrictions, as Minister for Finance, my role is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions. The Registrar of Credit Unions is responsible for administering the system of regulation and supervision of credit unions provided under the Credit Union Act 1997, with a view to the protection by each credit union of the funds of its members and the maintenance of the financial stability of credit unions generally. The role of the Registrar of Credit Unions in the regulation of credit unions is an independent one.

From time to time, the Registrar is required to act to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members. Such actions, including lending restrictions, are reviewed by the Registrar over time on a case by case basis. The number of restrictions imposed by the Registrar has increased over the last two years in light of the difficulties faced by parts of the credit union sector. The type of lending restrictions imposed takes account of the particular business profile and financial position of the credit unions concerned.