The Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD, has today, Monday published the Final Report of the Credit Union Advisory Committee [internal-link 5445 | CUAC report - Implementation Group
Following the CUAC Review of Implementation of the Recommendations in the Commission on Credit Unions in June 2016, an Implementation Group was established in order to oversee the implementation of the recommendations put forward in the CUAC report.
The Implementation Group met 18 times between February 2017 and December 2018 and worked through each of the CUAC recommendations, prioritising work on Recommendation 2 (Lending) and Recommendation 3(a) (Consultation and Engagement) during 2017.
On completing its term in December 2018, the Implementation Group produced a Final Report, which is being published today. The Final Report summarises the work of the Implementation Group, and highlights developments taking place in the Sector.
Commenting on the Final Report, Minister Paschal Donohoe T.D. remarked:
"I welcome the Final Report of the Implementation Group and wish to thank them for their work in progressing the CUAC recommendations. I note the many changes that have taken place since the CUAC report and welcome the variety of shared services initiatives emerging from the sector. I believe it is key for Credit Unions to collaborate effectively though such shared service structures to ensure they can provide more services to their members in a timely and cost effective manner.
"I note that the Final Report contains a number of recommended actions which are the responsibility of my Department. While I will consider the majority of these recommendations in due course, I have asked my officials to begin preparations to make the legislative amendments required to raise the Credit Union interest rate cap from 1% per month to 2% per month, as recommended in the report and previously recommended by CUAC. This proposal will then be brought to Cabinet as part of the legislative process.
"Of the recommended actions which are the responsibility of the Central Bank, I note that work is progressing on the Review of the Lending Framework for Credit Unions, which is currently under consultation. Review of the Lending Regulations is an important matter and one for which I have previously outlined my support."
The Minister concluded by saying:
"2019 should be a successful year for Credit Unions and I welcome the many developments taking place and which are outlined in the Final Report. Should these projects be realised, the sector will materially expand the services being provided to Credit Union members. The Government recognises the important role played by Credit Unions as co-operative, not-for-profit financial services providers and as such I am strongly supportive of a strengthened and growing Credit Union movement. I would encourage Credit Unions to continue to develop their business models, while looking to further provide for both their members and their common bonds, and further fulfil their important role in society."