Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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245. To ask the Minister for Finance if he will review correspondence (details supplied); and if he will make a statement on the matter. [10907/22]

Paul Murphy (Dublin South West, RISE)
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248. To ask the Minister for Finance if his attention has been drawn to the campaign by the Irish League of Credit Unions which is calling for his Department to make the necessary regulatory changes to enable credit unions to significantly increase their footprint in the mortgage market and honour the commitment in the Programme for Government for credit unions to become a key provider of community banking; and if he will make a statement on the matter. [10934/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 245 and 248 together.

This Government recognises the importance of credit unions.

The Programme for Government contains commitments to;

- Review the policy framework within which Credit Unions operate.

- Enable and support the Credit Union movement to grow.

- Support Credit Unions in the expansion of services, to encourage community development.

Credit unions can and do provide mortgages, with over half the sector engaging in mortgage lending at some level.  As at December 2021 credit unions had a mortgage book of approximately €280 million, which had grown 23% year-on-year.

The level of mortgage lending undertaken by the industry varies. 20 credit unions account for approximately 76 per cent of all new house loans with 50 credit unions accounting for 98 per cent of the total.

Since 1 January 2020, credit unions now have a combined capacity to provide up to €1.1 billion in additional SME and mortgage loans, with further capacity of up to 15% available to credit unions on approval by the Central Bank.

4 credit unions are currently approved for the 15% combined lending limit with 1 additional application to the Central Bank currently in progress. Up to 66 credit unions could apply for this 15% limit and it is the Government’s hope that more will continue to do so.

In regard to fulfilling the commitments in the Programme for Government for credit unions, the Review of Policy Framework is in its final stages with a summary list of proposals having recently been shared with all the credit union representative bodies. A final stakeholder engagement session has been scheduled for early March. Legislative proposals arising will go to Cabinet shortly thereafter. The proposals being considered should assist credit unions to invest in collaborative ventures, which could also be used to expand their mortgage offering.