Written answers

Tuesday, 23 June 2015

Department of Finance

Deposit Guarantee Scheme

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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246. To ask the Minister for Finance his views on the submission by the Irish League of Credit Unions regarding the deposit guarantee directive, whereby the league requests discretion to be applied to allow credit unions to be charged at a lower rate than other institutions, due to the lower degree of risk; and if he will make a statement on the matter. [24842/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Deposit Guarantee Scheme (DGS) provides protection of up to €100,000 per saver per credit institution, including credit unions. The scheme gives confidence to depositors that their money is safe in the event that a financial institution gets into financial difficulty.

Directive 2014/49/EU is a new Directive in relation to the DGS which is being transposed into Irish law.  Before transposition, the Department of Finance established a public consultation process to provide an opportunity for stakeholders to give their views on how discretions should be applied. This process concluded on Friday 12 June 2015.  While this Directive provides less flexibility in transposition to Member States than the previous Directive governing the DGS, Article 13 provides some discretion for Member States on the calculation of contributions to the DGS where a lower level of contribution for low risk sectors which, if justified, could be put in place. In relation to the contribution amount, Question 6 in my Department's consultation paper specifically asks whether or not credit unions should be considered a low risk sector and thus qualify for a lower level of contribution, it also requests justification for the answer provided.

All submissions received by my Department, including the submission received from the Irish League of Credit Unions, will now be examined and the views therein considered carefully over the coming weeks.

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