James O'Connor (Cork East, Fianna Fail)
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278. To ask the Minister for Finance if he will address matters raised in correspondence (details supplied) regarding lending by credit unions to support the development of student residences; and if he will make a statement on the matter. [47724/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I agree with the commentary in the details supplied that "supporting education is a core value of credit unions, as demonstrated by the scholarships and favourable interest rates offered to members undertaking higher education programmes". Credit unions are starting to play a more significant role in the housing market, particularly through the provision of home loans and investments in the Credit Union Approved Housing Body (AHB) Fund.

However, I must inform the Deputy, that credit union lending to support any commercial development proposal is not a permitted "business loan" under the Central Bank of Ireland’s Credit Union Act 1997 (Regulatory Requirements) (Amendment) Regulations 2019 ("Central Bank Regulations").

Under Part 1, Interpretation of the Central Bank Regulations a "business loan is defined as a loan “.... 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”.

In December 2024, the Central Bank of Ireland published Consultation Paper 159 on Proposed Changes to the Credit Union Lending Regulations (CP159) which sought views on proposals for targeted changes to house lending and business lending credit union lending regulations. I am not aware of any submission from, or indeed any discussion with the credit union representative bodies to the Central Bank of Ireland requesting amendments to permit development finance lending for student accommodation, or indeed any other type of development finance by credit unions.

As the Deputy is aware, the Central Bank of Ireland makes all of its regulations independent of Government.