Press release
Bigger and brighter future for Credit Unions
Published on
Last updated on
Published on
Last updated on
The passing of the Credit Union (Amendment) Bill 2022 at Committee Stage earlier today, has been welcomed by the Minister of State for Financial Services, Credit Unions, and Insurance, Jennifer Carroll MacNeill. The Bill will now progress to the Report stage.
This Bill is a very significant piece of enabling legislation and is the culmination of three years’ work with all stakeholders that will benefit the credit union sector into the future.
Minister Carroll MacNeill said:
“I am passionate about helping credit unions achieve their potential. It is important that credit unions can continue to develop their lending capabilities in the community in a safe and cost-effective way through collaboration.
"I believe all credit union members, irrespective of where they live, should have access to the full services of community banking. All members should for example be able to open a credit union current account, apply for a business loan and should be able to access a mortgage product. That is not happening at present and the Bill will help the credit union movement to meet this objective if they so wish.
"I want to thank my colleagues in the FINPER Committee and all credit unions for their constructive approach to the legislation. It is the first meaningful reform for the credit union sector in ten years and will help them to do more for their members.”
The two key amendments that Minister Carroll MacNeill brought before the Committee today to enable Credit Unions to reach their potential are:
1. to allow credit unions to take part in both loan participation and loan syndication and to allow credit unions
2. to refer members to other credit unions in all circumstances, regardless of whether or not the referring credit union provides the services the member is seeking
These are important enablers in ensuring that the sector enhances member services, grows lending and expands membership.
Minister Carroll MacNeill added:
“There are also a number of community benefits; benefits that have the capacity to help so many people around the country contained in the Bill. First and foremost, we have considered coercive control and the Domestic Violence Act. That is why we have introduced safeguards to the Nomination process and public access to the members list. This is critically important as it protects the most vulnerable in our society.
"In addition, we are introducing the requirement for each credit union to have an Environmental, Social and Governance Policy. Again, this is consistent with government policy.
"Finally, we have also modernised and clarified the language of the Credit Union Act.”
The amendments being brought today are targeted at the issues which arose post publication of the Bill in December 2022 and during the Second Stage debate in the Dáil.
Every opportunity was given to the sector at each stage of the drafting process. All views, proposals and queries were considered.
There are a substantial number of amendments being brought – the list of amendments totals 56.
The Bill will provide legislate framework to:
There are a number of non-legislative provisions in the Bill which aim to build on and enhance the relationship between the credit union sector and the Regulator.
Firstly, the Central Bank, CUAC and the Minister will enter into a Memorandum of Understanding to improve coordination on policy matters, while respecting regulatory independence.
"This is an initiative that is unique to the credit union sector and it is my fervent hope that the Memo will help to continue to build and enhance the relationship between the Regulator and the Advisory Committee. I would like to see the full extent of the experience and expertise of the Advisory Committee being utilised to its full potential.
"Secondly, the Central Bank has agreed to introduce an Enhanced Engagement Protocol with credit unions.
"And thirdly, we have amended the terms of reference of a stakeholder group, chaired by my officials, to widen attendance and enhance transparency with the sector."