Michael Fitzmaurice (Roscommon-Galway, Independent)
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307.To ask the Minister for Finance the amount and average value of mortgages outstanding by credit unions at end March 2023 and end March 2024; and if he will make a statement on the matter. [30914/24]

Jack Chambers (Dublin West, Fianna Fail)
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At the end of March 2024, the total amount of house loans outstanding, reported by credit unions in prudential returns submitted to the Central Bank, was €614.9 million. At the end of March 2023, the total amount of house loans outstanding reported was €364.9 million.

For credit unions reporting house loans, the average house loan was €115,844 at 31 March 2024, an increase on the average house loan size of €92,825 as at 31 March 2023.

As defined in the 2016 Regulations (S.I. No. 1 of 2016), “house loan” means a loan made to a member secured by property for the purpose of enabling the member to:

(a) have a house constructed on the property as their principal residence;

(b) improve or renovate a house on the property that is already used as their principal residence,

(c) buy a house that is already constructed on the property for use as their principal residence, or

(d) refinance a loan previously provided for one of the purposes specified in (a), (b) or (c) for the same purpose;

Michael Fitzmaurice (Roscommon-Galway, Independent)
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308.To ask the Minister for Finance the amount and average value of business lending outstanding by credit unions at end March 2023 and end March 2024; and if he will make a statement on the matter. [30915/24]

Jack Chambers (Dublin West, Fianna Fail)
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At the end of March 2024, the total amount of business loans outstanding, reported by credit unions in prudential returns submitted to the Central Bank, was €173.76 million. At the end of March 2023, the total amount of business loans reported was €151.45 million.

For credit unions reporting business loans, the average business loan was €22,744 at 31 March 2024, an increase on the average business loan size of €20,764 as at 31 March 2023.

For the purposes of the 2016 Regulations, “business loan” means a loan other than a community loan, that is made to-

(a) a member of the credit union that is an approved housing body, or

(b) a member, or where there is more than one member, at least one of those members, that satisfies the following conditions:

(i) the loan is made for purposes of the person’s trade, business or profession;

(ii) the person is a micro, small or medium-sized enterprise within the meaning of Commission Recommendation 2003/361/EC;

(iii) the loan is not made for the purpose of financing, in whole or in part, the purchase, construction or refinancing of buildings or the purchase or refinancing of land that the person intends to rent to a third party in order to generate income.

“Commission Recommendation 2003/361/EC” means the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises.

Michael Fitzmaurice (Roscommon-Galway, Independent)
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309.To ask the Minister for Finance his views on the appropriateness of the requirement for credit unions to require a business plan to be developed before business loans above €25,000 can be issued as per regulation 16(3) of Central Bank Statutory Instrument 1 of 2016; and if he will make a statement on the matter. [30916/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Credit Union Act 1997 (the 1997 Act) sets out provisions in relation to credit union lending and provides the Central Bank with regulation-making powers in relation to lending.

In making regulations under the 1997 Act, the Central Bank must have regard to the need to ensure that the requirements imposed by the regulations are effective and proportionate having regard to the nature, scale and complexity of credit unions, or the category or categories of credit unions, to which the regulations will apply.

Section 35(2) of the 1997 Act provides that ‘A credit union may make a loan to a member for such purpose as the credit union considers appropriate, upon such security (or without security) and terms as the rules of the credit union may provide. The ability of the loan applicant to repay shall be the primary consideration in the underwriting process of the credit union’.

In relation to business loans, where the total amount of business loans granted to a borrower, or group of borrowers who are connected, is €25,000 or more, the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (the 2016 Regulations) require that "A credit union shall only grant a business loan, a community loan, or a loan to another credit union where a comprehensive business plan and detailed financial projections (supported by evidence-based assumptions), appropriate for the scale and complexity of the loan, have been provided to it before it grants the relevant loan." The assessment of a business plan should enable the credit union to be satisfied that the borrowing business has the capacity to generate sufficient income to repay the loan.

This Regulation "does not apply to a business loan granted by a credit union where the total amount of business loans granted to a borrower, or group of borrowers who are connected, is less than €25,000.”

In November 2019, following a review and public consultation – Consultation on Potential Changes to the Lending Framework for Credit Unions, CP125 - the Central Bank issued a Feedback Statement and Amending Regulations setting out new lending measures for credit unions.

The Amending Regulations came into effect on 1 January 2020 and did not make any changes to the requirement in the 2016 Regulations relating to business plans and detailed financial projections. In the Feedback Statement on CP125, the Central Bank clarified that its expectation is that more comprehensive business plans and detailed financial projections are sought by credit unions for more complex and larger scale loans.

In the same Feedback Statement, the Central Bank committed ‘to perform and publish an analysis of credit union sector lending three years post-commencement of the amending regulations in order to assess and analyse the actual impact which the changes to the lending regulations have had and to inform any decisions on the need for future change’. The Central Bank commenced this review in Q4 2023, with an initial analysis expected in H2 2024.

I am aware that Minister Richmond, Minister of State with responsibility for credit unions has engaged with many credit union stakeholders regarding lending limits, the requirement for business plans for loans above 25,000, and other issues facing the sector. I understand that Minister Richmond has engaged with the Central Bank on this issue and the Central Bank are reviewing this, and other aspects of the Regulation. As the Deputy is aware, the Central Bank is completely independent of Government and makes regulation to safeguard credit union members' funds.

Michael Fitzmaurice (Roscommon-Galway, Independent)
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310.To ask the Minister for Finance the number of volunteer directors working on credit union boards of directors; and if he will make a statement on the matter. [30917/24]

Jack Chambers (Dublin West, Fianna Fail)
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Each credit union has a volunteer board of directors (board) that is directly elected by its members. Generally speaking, the board is responsible for the general control, direction and management of the credit union.

Sections 53-57 of the 1997 Act set out the relevant legislative provisions relating to the directors of credit unions. In accordance with section 53, other than in limited circumstances, the number of directors must be specified in a credit union’s registered rules and must be no less than 7, no more than 11, and an odd number.

As at 18 July 2024, based on Annual Return data submitted by individual credit unions to the Central Bank, there were c.1,800 directors across the credit union sector, across 188 credit unions.

Each credit union submits an Annual Return to the Central Bank by 31 March latest each year - this return includes a listing of directors serving in the credit union as at the completion date of the Annual Return.