Brendan Smith (Cavan-Monaghan, Fianna Fail)
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110. To ask the Minister for Finance the proposals he has to address issues of particular interest to credit unions, including reserves, levies and lending requirement regulations; and if he will make a statement on the matter. [39416/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I thank the Deputy for his question.

In relation to reserves, the Credit Union Act sets out provisions in relation to credit union reserves and provides the Central Bank with regulation-making powers in relation to reserves.

Credit unions are required to maintain a minimum regulatory reserve requirement of at least 10 per cent of the assets of the credit union under Section 45 of the Credit Union Act and the 2016 Regulations made by the Central Bank.

Overall, the average total realised reserves (including regulatory reserves) held by credit unions on 31 March 2025 amounted to 16.5% of total assets which is well above the minimum requirement of 10%.

Regarding credit union levies, in 2023, the then Minister requested the Department of Finance to complete a comprehensive review of the Stabilisation and Resolution Funds. In July 2024, the consultation paper was published and the consultation closed on 27 September 2024.

Since then, my officials have been engaged with the European Commission on some technical queries arising from the consultations. 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 Minister of State. I hope to conclude this process shortly.

On lending limits, in December 2024 the Central Bank published Consultation Paper 159 on Proposed Changes to the Credit Union Lending Regulations (CP159) which sought views on proposals for targeted changes to the credit union lending regulations. This consultation was open for submissions until 11 February 2025.

In accordance with the requirement under section 84A of the Credit Union Act, 1997, the Central Bank has recently commenced a statutory consultation process on the relevant draft amending Regulations with myself and the Credit Union Advisory Committee.

Following completion of the statutory consultation process, the Central Bank intends to publish a feedback statement on CP159 and a draft of the amending Regulations.

On the assumption that no material issues are raised and that there are no changes required during the statutory consultation process, the Central Bank expects that the final amending Regulations will come into effect during Q3 of this year.