OREANDA-NEWS. The Central Bank of Ireland is today (31 July 2015) publishing final regulations for credit unions along with a feedback statement and submissions received on Consultation Paper 88 - Consultation on Regulations for Credit Unions on commencement of the remaining sections of the 2012 Act (CP88).

The regulations cover a number of areas including reserves, liquidity, lending, investments, savings and borrowings, and build upon existing prudential and governance requirements.

It is proposed that the regulations will commence on 31 December 2015 to coincide with the commencement of the remaining sections of the Credit Union and Co-operation with Overseas Regulators Act 2012 (the 2012 Act).  From 31 December 2015, transitional arrangements will also be provided for certain areas of the regulations.

The Central Bank has given detailed consideration to the feedback received on CP88 and this has influenced the final regulations in areas such as the:

The Central Bank has also indicated in the feedback statement that we intend to invite interested parties in the credit union sector to participate in focused dialogue in the coming months, with a view to gaining a better understanding of how credit unions want to develop their business model.  Having considered credit union proposals on business model development, the Central Bank will identify whether any changes are required to the regulatory framework to facilitate prudent development.

The publication of these regulations marks a further important step in the development of a strengthened regulatory framework for credit unions.  These regulations, combined with the commencement of the remaining sections of the 2012 Act and the prudential and governance requirements already in place, provide an appropriate regulatory framework for the credit union sector at this time.  In the future, the Central Bank can review and update the regulations as appropriate as the sector develops, following consultation with the sector.

Registrar of Credit Unions, Anne-Marie McKiernan said: ‘these regulations will foster a safer stronger credit union sector, with greater protection of members’ funds, through an enhanced regulatory framework. The Central Bank is keen to ensure that the regulations remain appropriate for the credit union sector and will undertake focused engagement with credit unions to understand how the sector envisages future development of their business model.’