Michael McGrath (Cork South Central, Fianna Fail)
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81. To ask the Minister for Finance if his attention has been drawn to the fact that some financial institutions have already started charging credit unions for holding their funds. [27885/16]

Michael 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.

While both this Government and the Central Bank are supportive of credit unions, the board of directors at a credit union has responsibility for the general control, direction and management of the affairs, funds and records of the credit union.

In addition, under section 43 o f the Credit Union Act, 1997 credit unions are required to manage their investments to ensure that they do not involve undue risk to members' savings. The Central Bank also informs me that credit union investments must also fall within the classes of investments set out in the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (the Regulations) and the maturity and concentration limits set out in the Regulations.  Credit unions must continue to adhere to these requirements in the current low interest rate environment. While adhering to these measures, a credit union has discretion as to where it chooses to deposit or invest its own funds. 

The Government recognises the important role of credit unions as a volunteer co-operative movement in this country. The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is determined to support a strengthened and growing credit union movement.