Levy collections for Credit Union Resolution and Stabilisation Funds paused until 2029
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From: Department of Finance
- Published on: 3 October 2025
- Last updated on: 12 October 2025
The Minister for Finance Paschal Donohoe has signed regulations setting a nil levy for the Credit Union Resolution and Stabilisation Funds, pausing levy collections on the two funds until October 2029.
The decision follows a detailed consultation with stakeholders and reflects the robust financial position of the Resolution and Stabilisation funds at this time. Interest will continue to accrue on each of the funds and levy collections may be restarted should there be any drawdown from the funds or a deterioration in the risk profile of the sector. The next comprehensive review of the funds is scheduled for 2029.
The pause in levy collections will provide credit unions with greater certainty over their financial planning in the years ahead. This decision is in line with government commitments to position credit unions as community-centric financial institutions and support them in continuing to provide affordable financial services to their members.
Minister for Finance Paschal Donohoe commented:
“The decision to pause levy collections reflects the current strength of the credit union sector and the solid position of the funds. By suspending the levies until 2029, credit unions will have additional resources to serve their members effectively, while the flexibility to restart levy contributions if circumstances require it is also retained. This approach provides stability and certainty for credit unions and their members.”
Minister for Financial Services, Credit Unions and Insurance, Robert Troy, welcomed the news saying:
“Credit unions play a vital role in communities across the country. The pausing of these levies supports the continued stability and growth of the credit union sector. In doing so, we are giving the credit unions the capacity to focus on member services and future growth. The government remains committed to ensuring the long-term resilience of the sector, and these funds will continue to provide important safeguards should they be needed in the future.”
Notes
Resolution Fund
The Central Bank and Credit Institutions (Resolution) Act 2011 established a resolution regime for credit institutions and credit unions in Ireland. The Credit Institutions Resolution Fund (Resolution Fund) was established under this legislation to support resolution actions in the State and is managed and administered by the Central Bank. The net assets of the Resolution Fund were €65.5 million as at 30 June 2025.
The purpose of the Resolution Fund is to provide a source of funding for the resolution of financial instability in, or an imminent serious threat to the financial stability of, an authorised credit institution, and in particular:
- to provide funds for any payment required
- to provide capital for a bridge-bank, with the written consent of the Minister, and
- to meet expenses of the Central Bank in discharging its functions under the 2011 Act
The Department of Finance, in collaboration with the Central Bank of Ireland, carried out a review of the levy in 2019, which included a public consultation. Following this review, it was decided that the target size of the Resolution Fund should be set at €65 million and that this target should be met by 2025.
A further detailed review of the Credit Institutions Resolution Fund was completed in August 2025. The feedback statement resulting from this review was published on 27 August 2025. The recommendations from this review include:
- target size of the Resolution Fund to remain at €65 million, with all further interest accumulated to continue to be rolled up into the Fund;
- no further levies are collected at present, however, the Minister reserves the right to set a levy in accordance with Section 15(1) of the 2011 Act should there be any drawdown from the Fund, any material deterioration of risk profile of the sector (and completion of the statutory consultation)
- the Fund is reviewed again in 2029
The Department of Finance prepares the annual Levy Regulations following consultation with the Central Bank and the Credit Union Advisory Committee. These regulations come into force on 1 October each year and prescribe the rate of contribution or method of calculating the rate of contribution to the Resolution Fund.
Stabilisation Fund
The Stabilisation Fund is financial support provided to a credit union to restore and facilitate maintenance of a credit union’s reserve requirement.
Under section 59(3) of the Credit Union and Co-Operation with Overseas Regulators Act (“the CUCOR Act”), the Minister for Finance is required to make regulations prescribing the rate of contribution or a method of calculating the rate of contribution to the Stabilisation Fund, which is a part of the Credit Union Fund. There is €21.3 million in the Stabilisation Fund as at 30 June 2025.
A substantial review of the Credit Union Stabilisation Fund was completed in August 2025. The feedback statement resulting from this review was published on 27 August 2025. Recommendations from this review include:
- target size of the Resolution Fund to remain at current assets of €21.3 million, with all further interest accumulated to continue to be rolled up into the Fund;
- no further levies are collected at present. However, the Minister reserves the right to set a levy in accordance with Section 59(3) should there be any drawdown from the Fund, any material deterioration of risk profile of the sector (and completion of the statutory consultation)
- that the fund be reviewed again in 2029
To enable the levy to vary from year-to-year, regulations are made annually prescribing the rate of the levy and the basis on which it will be charged. The CUCOR Act requires that the Minister consult the Central Bank, Credit Union Advisory Committee, and Credit Union Restructuring Board before prescribing the annual levy rate each year.