Carol Nolan (Offaly, Independent)
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272. To ask the Minister for Finance the number of credit unions currently operating in in the State; to list all mergers of credit unions which have taken place from 1 January 2023 to date; his position on future credit union mergers; if such mergers are necessary; and if he will make a statement on the matter. [49168/26]

Simon Harris (Wicklow, Fine Gael)
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Framework for the operation of credit unions

Generally speaking, credit unions in Ireland are regulated and supervised under the Credit Union Act, 1997 (the 1997 Act) and regulations issued by the Central Bank of Ireland (Central Bank), which set out the framework for the registration, regulation and operation of credit unions.

Under the 1997 Act, the Central Bank is responsible for administering the system of regulation and supervision of credit unions to ensure each credit union protects its members’ funds and to ensure the maintenance of the financial stability and well-being of credit unions generally.

Number of credit unions currently operating in the State

Under section 8(5) of the 1997 Act, the Central Bank is required to enter the name of every credit union in a register maintained for the purposes of the 1997 Act (being a continuation of the register kept for the purposes of the Credit Union Act 1966). The Central Bank publishes a register of credit unions on its website.

The Central Bank informs me that the total number of individual, actively trading credit unions is 164 as of 26th June 2026.

Amalgamations and Transfers of Engagements

Part IX of the 1997 Act allows for two or more credit unions to amalgamate by forming a credit union as their successor (section 128 of the 1997 Act) or for a credit union to transfer its engagements to another credit union which, in accordance with section 129 of the 1997 Act, undertakes to fulfil the engagements (a transfer of engagements or TOE).

In the period from 1 January 2023 to 26 June 2026, a total of 39 TOEs have been confirmed by the Registry of Credit Unions within the Central Bank. No amalgamations of credit unions took place during that period.

The Central Bank does not publish or otherwise make available a list or register of amalgamations or TOEs that have taken place. However, in accordance with section 100(1) of the 1997 Act, the Central Bank must prepare and keep a public file relating to each credit union.

In this regard, sections 100(2)(a) and (b) of the 1997 Act require that any instrument of transfer of engagements under section 129, by which the credit union transfers its engagements or undertakes to fulfil the engagements of another credit union, must be placed on the public file of a credit union.

Credit union mergers and restructuring

The Credit Union Restructuring Board (ReBo)

Following a recommendation from the Commission on Credit Unions, the Credit Union Restructuring Board (ReBo) was established under the Credit Union and Co-operation with Overseas Regulator Act 2012, to facilitate and oversee the restructuring of credit unions on a voluntary basis.

During its period of operation, ReBo oversaw and facilitated 82 restructuring projects involving 156 credit unions with assets totalling circa €6 billion.

Review of Restructuring in the Credit Union Sector 2019

The Thematic Review of Restructuring in the Credit Union Sector, published by the Central Bank in February 2019, found that while the number of registered credit unions had reduced by 35% from 30 September 2013 to 30 September 2018, there was only an 8% reduction in business locations operated by credit unions over that period of time.

The Review also found that in the 77% of transfers completed between those dates, no business locations had closed as a result of the completion of a transfer.

The Review found that restructuring had a positive impact on the financial position and performance of credit unions as transferees, with higher lending growth and helped help credit unions to realise cost savings by eliminating duplicated costs and achieving scale economies.

Regulatory and Supervisory Outlook 2026

In the Central Bank’s Regulatory and Supervisory Outlook 2026 report, the Central Bank noted that sector restructuring continues to improve sustainability, create scale and help address organisational weaknesses.

On business model and strategy, the Central Bank noted that significant change in the credit union sector has been driven by consolidation and the provision of a broader range of products and services to their members.

One of the Central Bank’s main planned activities relating to this supervisory focus area is to support strategic restructuring activities for TOE projects by credit unions, with enhanced post transfer oversight for large scale TOE projects.