Written answers

Tuesday, 26 May 2015

Department of Finance

Credit Unions Regulation

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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282. To ask the Minister for Finance the impact the proposed legislation contained within Consultation Paper 88 is likely to have on the future income of credit unions; the financial impact analysis of this that was conducted; if the results of this will be shared; and if he will make a statement on the matter. [20157/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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My role as Minister for Finance 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 at the Central Bank is the independent regulator for credit unions.  Within her 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.

I have been informed by the Central Bank that the draft regulations set out in Consultation Paper 88 - CP88, will be introduced on commencement of the remaining sections of the 2012 Act. The regulations will replace and, where appropriate, amend a number of requirements that currently exist in legislation and guidance. Additional requirements have also been included in the regulations, where necessary, to strengthen the regulatory framework.

In accordance with the Consultation Protocol for Credit Unions, issued on 27 November 2012, the Central Bank has conducted a Regulatory Impact Analysis - RIA - on the draft regulations set out CP88. The purpose of the RIA was to examine the impact of different policy options on commencement of the remaining sections of the 2012 Act and to identify the most appropriate option. The RIA also examines the costs, benefits and impacts associated with each option. The RIA was provided as an appendix to CP88 and credit unions and other sector stakeholders were invited to provide additional information or analysis on the potential impact of the draft regulations in their submissions to the Central Bank on CP88.

Following review of all submissions received the Central Bank will publish a feedback statement outlining the feedback received, the Central Bank's response and the final regulations for credit unions. All submissions received will be made available on the Central Bank's website at this stage. The Central Bank is planning to publish the feedback statement at the end of June.

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