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Report calls for restructuring of credit union sector

The Finance Minister has said recommendations made by the Commission on Credit Unions will inform Government policy on credit unions for the “foreseeable future”.

rofessor of Financial Services at Queens University Belfast, Prof Donal McKillop, briefs the press on the Commission on Credit Unions report
rofessor of Financial Services at Queens University Belfast, Prof Donal McKillop, briefs the press on the Commission on Credit Unions report
Image: Laura Hutton/Photocall Ireland

A MAJOR REPORT published by the Commission on Credit Unions today has recommended the restructuring of Ireland’s Credit Unions.

The report examined key features of credit unions in the country and investigated the financial position of the sector. Its key recommendations relate to sector restructuring, the details of the proposed new legislative and regulatory framework, and new governance requirements for credit unions.

Nothing that the national economic challenges have contributed in a decline in the performance of credit unions, the report recommends that the unions be restructured on a voluntary basis through mergers and transfers, which should take place over a maximum of four years.

Under the proposals, unions that are approved by the Restructuring Board will be granted funding, where required and subject to conditions, to ensure they have adequate capital and to upgrade systems.

However, the report noted that credit unions with a viable business model, and which were capable of meeting regulatory requirements, would not be subject to restructuring.

The Finance Minister Michael Noonan welcomed the Commission on Credit Unions’ report, saying that it offered far-reaching recommendations to restructure the Irish credit union sector and strengthen its legislative and regulatory framework.

“The work of the Commission will inform Government policy on credit unions for the foreseeable future,” he said.

Read the full report by the Commission on Credit Unions>

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