Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

74. To ask the Minister for Finance his plans to enable credit unions to offer point-of-sale cards; and if he will make a statement on the matter. [41957/15]

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

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.

The Credit Union Act  1997 ("1997 Act") and related statutory instruments (provide for services exempt from additional services regulations) set out the services that a credit union may provide to its members. Where a credit union wishes to provide services to its members, in addition to the services that are provided for under the 1997 Act, an application may be made to the Central Bank for approval to provide such additional services in accordance with the provisions set out in sections 48-52 of the 1997 Act.

The Central Bank has informed me that since 2010 it has received less than 10 applications for approval of additional services under sections 48-52 of the 1997 Act. These have all been received in the last 15 months and are currently at various stages in the approval process, with a number having been fully approved.

The Central Bank has indicated to credit unions that where they are considering offering debit card services to members, the credit union should, in the first instance contact the Registry of Credit Unions to inform them of any such proposals. I have been informed by the Central Bank that a small number of credit unions are currently offering card services to members or are involved in card services pilot schemes.

I have been further informed by the Central Bank that it is, in principle, supportive of credit unions developing additional services and is open to working with the credit union sector to ensure that prudent and appropriate development can be facilitated within the regulatory framework. In its role of supporting the sustainable and prudent development of the sector, the Central Bank wants to ensure that proposed changes to the business model are prudently structured and implemented. Given a number of areas identified in feedback received on consultation paper 88-CP88, and through other engagements with sector stakeholders, the Central Bank will engage with interested parties to participate in focused dialogue in the coming months. Dialogue will initially centre on:

- the services credit unions wish to develop in the areas of card services and payment accounts; and

- credit unions' aims regarding longer term lending including further developments on the provision of mortgages to members.

To commence this engagement process, an initial meeting with a number of credit union stakeholders, including the representative bodies and a number of credit unions was held by the Central Bank in mid-November.

The Central Bank also informs me that the Annual Information Seminars for 2015 are currently taking place and will run until late November and these will also provide an opportunity for the Central Bank to engage with individual credit unions and hear their views on business development.

The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is absolutely determined to continue to support a strengthened and growing credit union movement.