Written answers

Tuesday, 24 February 2015

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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227. To ask the Minister for Finance his plans to create a third force in Irish banking, using the credit union network; and if he will make a statement on the matter. [7734/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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While the Government is absolutely determined to support a strengthened and growing credit union movement, my role as Minister for Finance is to ensure the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.

Credit unions exist to attain the economic and social goals of their members and it is a matter for an individual credit union to determine how it might develop its business model going forward. However, in doing so a credit union must retain the responsibility of ensuring members' funds are not put at undue risk.

I am always open to considering proposals in relation to credit unions, particularly those that would see the development of the credit union business model and an increase in income for the sector.

The Registrar of Credit Unions at the Central Bank is responsible for the regulation of credit unions and as such, any proposal in relation to credit unions would be subject to regulatory approval by the Regulator.

The Report of the Commission on Credit Unions recommended that the credit union sector be restructured on a voluntary, time-bound and incentivised basis, in order to improve efficiency and maintain the strength and stability of the movement into the future. The Credit Union Restructuring Board (ReBo), was set up under the Credit Union and Co-operation with Overseas Regulators Act 2012, with the objective of supporting the restructuring process to underpin the stability and long-term viability of credit unions and the sector at large and to provide an opportunity for stronger credit unions to develop a more sustainable business model.

I would like to emphasise that while recognising the important role of credit unions as a volunteer co-operative movement and the distinction between credit unions and other types of financial institutions, the Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall.

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