Pearse Doherty (Donegal, Sinn Fein)
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268. To ask the Minister for Finance if he will bring forward a service level agreement between the Central Bank and the credit union movement as discussed during the Credit Union (Amendment) Act 2023 legislative process; and if he will make a statement on the matter. [35780/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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In conjunction with the Credit Union (Amendment) Act 2023, a number of non-legislative actions were agreed in order to encourage transparency of regulatory engagement. One of these actions was the development of an Enhanced Engagement Protocol between the Central Bank and the credit union sector.

Throughout the Credit Union (Amendment) Act 2023 legislative process the Central Bank has been and still are very open to engagement and consultation with the sector.

The Central Bank has published an Open & Engaged Charter 2024-2026 which highlights the critical priority for the Central Bank to listen to stakeholders and engage in dialogue and learning. The Registry of Credit Unions (the Registry), the division within the Central Bank with primary responsibility for the registration and supervision of credit unions, guided by the Open & Engaged Charter, engages in a clear, open and transparent manner both with individual credit unions and credit unions as a collective. The Registry advises that it is currently drafting a Credit Union-specific engagement charter.

The Registry supports the sector through regular stakeholder engagement grounded in its statutory mandate, without impacting on the statutory independence of the Central Bank in the performance of its functions, or in the exercise of its powers in relation to credit unions.

Implementation of the Credit Union (Amendment) Act 2023, and the non-legislative actions to encourage transparency of regulatory engagement are critically important for the development of the credit union sector. It is for this reason that the Credit Union Advisory Committee (CUAC) has been requested by me to complete a series of reviews to assess progress with implementation. CUAC's reports will include review of the non legislative actions such as the Engagement Protocol.

CUAC's initial report dated 29 November 2024 noted that the Central Bank and the Representative Bodies 'welcome the development of an Enhanced Engagement Protocol between the Central Bank and the credit union sector and intend to engage on it during 2025'.

CUAC will continue to monitor all aspects of implementation of the Credit Union (Amendment) Act 2023, and associated non-legislative actions, and inform me accordingly.

Pearse Doherty (Donegal, Sinn Fein)
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269. To ask the Minister for Finance his views on the Credit Union Stabilisation Fund levy paid by credit unions; the amount that has been collected each year by the fund since its inception; his plans for the future of the levy; and if he will make a statement on the matter. [35781/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The purpose of the Stabilisation Scheme is to have funds available, if needed, to assist credit unions whose reserves have temporarily fallen below the 10% minimum statutory reserve requirement but are otherwise considered by the Central Bank to be viable. To be eligible for consideration for stabilisation support, a credit union must have reserves of at least 7.5% of total assets but its reserves must be below 10% of total assets.

See below, in tabular format, the amount that has been collected each year by the Stabilisation Fund since its inception. Data has been extracted from the annual Credit Union Fund audited accounts.

The Stakeholders consulted included: the Central Bank of Ireland, the Irish League of Credit Unions (“ILCU”), the Credit Union Development Association (“CUDA”), the Credit Union Managers Association (“CUMA”), the National Supervisors Forum (“NSF”) and a random selection of 20 credit unions operating in the Republic of Ireland as of 26 April 2024. The consultation paper was published on the Departmental website and any credit union not randomly selected was free to make a submission on the consultation.

The consultation closed on 27 September 2024. Since then, officials have been engaged with the European Commission on some technical queries arising from the consultation on the Stabilisation Fund. Officials are now approaching the end of that process and following that, will complete the Feedback Statements and draft recommendations for consideration by myself and the Minster for State. I hope to conclude this consultation process shortly.

Pearse Doherty (Donegal, Sinn Fein)
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270. To ask the Minister for Finance his views on the Credit Institutions Resolution Fund levy paid by credit unions; the amount that has been collected each year by the fund since its inception, his plans for the future of the levy; and if he will make a statement on the matter. [35784/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The purpose of the Credit Institutions Resolution Fund (CIRF) is to provide a source of funding for the resolution of financial instability in, or an imminent serious threat to the financial stability of, a credit union.

See below, in tabular format, the amount that has been collected each year by the Resolution Fund since its inception. Data has been extracted from the annual CIRF audited accounts.

The Stakeholders consulted included: the Central Bank of Ireland, the Irish League of Credit Unions (“ILCU”), the Credit Union Development Association (“CUDA”), the Credit Union Managers Association (“CUMA”), the National Supervisors Forum (“NSF”) and a random selection of 20 credit unions operating in the Republic of Ireland as of 26 April 2024. The consultation paper was published on the Departmental website and any credit union not randomly selected was free to make a submission on the consultation.

The consultation closed on 27 September 2024. Since then, officials have been engaged with the European Commission on some technical queries arising from the consultation on the Resolution Fund. Officials are now approaching the end of that process and following that, will complete the Feedback Statement and draft recommendations for consideration by myself and the Minster for State. I hope to conclude this consultation process shortly.