Ministers host Credit Unions for signing of Commencement Order to implement the Credit Union Amendment Act 2023

Ministers McGrath and Carroll MacNeill host Credit Unions for signing of Commencement Order to implement the Credit Union Amendment Act 2023

Minister McGrath in the company of Minister Carroll MacNeill, Minister for Financial Services, Credit Unions and Insurance, signs Commencement Order to implement Phases 1 and 2 of the Credit Union Amendment Act 2023.

The Minister for Finance Michael McGrath has signed an Order to commence Phase 1 and Phase 2 of the Credit Union Amendment Act 2023, which will open up opportunities to expand membership and services in the credit union sector in Ireland.

At the event held in the Department of Finance earlier today, members for all four representative bodies (ILCU, CUDA, CUMA and NSF), members of the Credit Union Advisory Committee, the Registrar of Credit Unions in the Central Bank and department officials attended this significant commencement event for the credit union sector.

The commencement of the Act will be phased with Phase 1 coming into effect on Thursday 22nd February 2024, while the commencement of Phase 2 will come into effect on Monday 8th April 2024.

The proposed amendments to the legislation aim to bring about significant reforms for the credit union sector in Ireland. The Act represents a very significant piece of legislation that will have far-reaching positive implications for the credit union sector in the years to come.

There are a number of options for credit unions to collaborate, share resources and generate economies of scale. It is expected that this will enable credit unions compete more effectively in the mortgage and SME lending market.
Credit unions are now free to choose the option most suited to their member’s needs, including:

o The referral of members to another Credit Union with a wider product offering and the option of loan participation and syndication;

o In addition, corporate credit unions can now be formed, something that is potentially transformative for the sector.

There will also be increased flexibility around the common bond, opening up opportunities to expand membership and services.
Credit union boards will be empowered to better manage their own Governance and to allow each board to focus and concentrate on strategy and development.

Minister McGrath commented:

“The credit union sector is a vital cornerstone of Irish society with approximately 200 credit unions and more than 400 credit union branches across the State. This is a great opportunity for credit unions to expand, grow and develop. Both Phase 1 and 2 which I have signed today, will have far-reaching positive implications for the credit union sector in the years to come.

I want to thank Minister Carroll MacNeill , her predecessor and all who have contributed to bring this important legislation to this point..”

Minister for Financial Services, Credit Unions and Insurance Carroll MacNeill stated:

“The Credit Union (Amendment) Act provides a hugely important opportunity to be able to solidify the position of the credit unions in the financial services architecture of this State and provide for its sustainability through increased lending.

I would like to thank all those involved who worked so hard on this legislation, the representative bodies (ILCU, CUDA, CUMA and NSF), the staff in the Registry of Credit Unions in the Central Bank, CUAC and officials within the Department of Finance.

From the beginning, they displayed a remarkable level of collaboration and engagement on both policy review and legislative procedures.

I would like to express my gratitude to my colleagues in the Oireachtas for their involvement and valuable contributions throughout the various stages of this act.”

END