Michael McGrath (Cork South Central, Fianna Fail)
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118. To ask the Minister for Finance the number of credit unions currently operating under lending restrictions; the number of credit unions with restrictions on lending to individuals and aggregate monthly lending in bands of €10,000; and if he will make a statement on the matter. [23879/16]

Michael Noonan (Limerick City, Fine Gael)
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I have been informed by the Central Bank that 26% of credit unions are operating under lending restrictions.

Almost all credit unions with a lending restriction in place have a maximum individual loan size restriction. In the majority of cases, the maximum individual loan size is in excess of €10,000 as detailed in the table below.

There are 13 credit unions that have a monthly maximum lending restriction imposed.

In February 2015 the Central Bank commenced a lending restriction review initiative, whereby credit unions subject to a lending restriction that are satisfied they have made the necessary improvements and have embedded these improvements in robust risk sensitive lending practices, could apply for a review of their lending restriction. The closing date for receipt of applications to review lending restrictions under this initiative was 30 September 2015.

Currently approximately 26% of credit unions have a lending restriction compared with 52% at the start of the review process.

Michael McGrath (Cork South Central, Fianna Fail)
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119. To ask the Minister for Finance the number of credit unions which have been approved and declined respectively for additional services in the past five years; the number of applications ongoing; and the length of time it takes on average from preliminary application stage to full approval. [23880/16]

Michael Noonan (Limerick City, Fine Gael)
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The Credit Union Act, 1997 (the 1997 Act) and the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (which set out services exempt from additional services regulations) set out the services that a credit union may provide to its members. These include loans; savings; account access by phone; account access by internet; third party payments (including EFT); ATM services; bureau de change; certain insurance services on an agency basis; group health insurance; bill payment; money transfers; standing orders; direct debits; financial counselling; PRSAs on an introduction basis and insurance on an introduction basis. Where a credit union wishes to provide services to its members, other than those 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 48-51 of the 1997 Act. As set out in communications to the sector the Central Bank is, in principle, supportive of credit unions developing additional services. The Central Bank will consider proposals from credit unions on new additional services they wish to provide to members where the credit union can demonstrate that:

- the proposed additional service is supported by a robust business case;- the proposed additional service is not contrary to financial services legislation;- the board of directors has a sound appreciation of the nature of the additional service proposed and is fully informed of the strategic, governance, risk management, operational, financial and legal implications involved; and- systems and controls are in place to ensure any risks involved in the provision of the additional service are managed and mitigated. As set out above credit unions can apply to the Central Bank for approval to provide such additional services in line with sections 48-51 of the 1997 Act.  I have been informed by the Central Bank that in the last five years, five applications for additional services have been approved, no applications have been declined and there are currently seven applications in progress.  I have been further informed by the Central Bank that the timescale from preliminary application stage to full approval depends on the quality of information provided. Where the application form has been fully completed and contains or includes all of the information requested, the Central Bank endeavours to turn around the application as quickly as possible.