Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 24: To ask the Minister for Finance the action he has taken to ensure that the lending restrictions placed on credit unions by the Registrar of Credit Unions have been lifted. [19301/12]

Michael Noonan (Limerick City, Fine Gael)
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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 removing of lending restrictions. I believe that such action would represent interference in the work of the independent regulator.

The Registrar of Credit Unions advises me that in order to protect the savings of members in credit unions and ensure that credit unions focus on such risks when making lending decisions, lending restrictions have been placed on a number of credit unions as their financial position has deteriorated. The individual credit union lending restrictions currently in place are reviewed on a regular basis and if a credit union can demonstrate an improved financial position then such restrictions can be eased. The number of restrictions eased following such review is small which reflects the significant challenges in the sector.