Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context

Question 41: To ask the Minister for Finance further to Parliamentary Question No. 51 of 1 February 2012, regarding restrictions to credit union lending, if he will detail the types of restrictions currently operating on credit unions and the detail of the extent of the easing of these restrictions on the 25 credit unions who successfully sought the easing of restrictions in the past 12 months; the reasons that 37 credit unions who asked for the restrictions to be eased were refused; the number of credit unions that have had the lending restrictions lifted completely; and if he will make a statement on the matter. [9951/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The imposition of lending restrictions is the responsibility of the Registrar of Credit Unions, who is the independent regulator for credit unions. Within his independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members. 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. It would not be appropriate for me, as Minister for Finance, to comment on the placing or easing of lending restrictions in individual cases. I believe that such action would represent interference in the work of the independent regulator.

The Registrar of Credit Unions advises me that he has put lending restrictions in place in order to protect the savings of members in credit unions and to ensure that credit unions focus on risks when making lending decisions. Restrictions are imposed on a case-by-case basis and are reviewed regularly. The Registrar has advised that each credit union will be aware of its individual position. In general, in relation to those credit unions that have sought an easing in lending restrictions, the Registrar has advised that lending restrictions can be lifted or eased if a credit union can demonstrate an improvement in its financial position and that it would not be appropriate to comment on individual cases. The type of lending restrictions can include maximum individual loan size, overall maximum monthly lending limits and restrictions on business lending.