09.09.2015, 15:12
The Central Bank of Ireland has published the outcome of an external review of the performance of its functions in relation to credit unions
OREANDA-NEWS. The Central Bank of Ireland has today (9 September 2015) published the outcome of an external review of the performance of its functions in relation to credit unions. The review was carried out by the International Credit Union Regulators’ Network (ICURN) and this is the first time ICURN’s ‘Guiding Principles for Effective Prudential Supervision of Cooperative Financial Institutions’ have been used as a reference point for such a review..
The Central Bank’s participation in this review represented an opportunity for us to invite external scrutiny on the performance of our functions in relation to credit unions for the purposes of ensuring that we measure up to international standards and the expectations of sector stakeholders. In view of the substantial changes in the regulatory regime and operating environment for credit unions in Ireland since 2012, including the introduction of a strengthened regulatory framework for credit unions and the voluntary restructuring of the credit union sector that is currently underway, the peer review report provides a timely examination of Ireland’s legislative, regulatory and supervisory framework in relation to credit unions.
Registrar of Credit Unions, Anne-Marie McKiernan said: ‘We welcome the ICURN team’s assessment that the Central Bank effectively performs its functions in the regulation and supervision of the credit union sector and that we have effectively undertaken the demanding task of introducing a comprehensive regulatory structure for credit unions. The Central Bank recognises the importance and benefits of an external review of its regulatory performance in relation to credit unions and we welcome the suggestions of the ICURN team in relation to enhancing our performance as an effective regulator. We are developing an action plan to enhance our current practices in the areas referred to in the ICURN team’s recommendations, including communications and guidance issues, and aspects of our supervisory approach. We are conscious of the need for clear communication in a time of substantial change for the credit union sector and will endeavour to further develop our communications with credit unions, including through the new on-site engagement model we are developing for 2016 and beyond, and the dialogues on business model development planned to commence later this year. The Central Bank wishes to express its appreciation to the ICURN team for carrying out this important piece of work.’
About the external review
Under legislation, the Bank is required to undertake an international peer review of its regulatory performance at least every four years. The first such reviews were progressed during 2014 in the areas of credit institutions supervision and credit union supervision, insurance supervision, markets supervision and consumer protection. The peer review in relation to credit unions was carried out in 2015.
About the International Credit Union Regulators’ Network
ICURN is an independent international network of credit union regulators formed in 2007, with members drawn from over 30 countries and jurisdictions, including Ireland, other EU countries (e.g. UK, Poland and Lithuania), USA, Canada and Australia. ICURN facilitates the sharing of information and positions of common interest among financial cooperatives, initiates research on financial cooperatives and their oversight, identifies best practices and provides direct access to an exclusive forum for though in issues critical to sound credit union regulation.
About the ‘Guiding Principles for Effective Prudential Supervision of Cooperative Financial Institutions’
The Guiding Principles for Effective Prudential Supervision of Cooperative Financial Institutions were released by ICURN on Sept. 16, 2011. Taking into account financial cooperatives' unique nature and using the Basel Committee's Core Principles for Effective Banking Supervision as a guide, the document developed by ICURN incorporates 21 principles conducive to developing an effective supervisory system for credit unions, caisses populaires, savings and credit co-operatives, savings and credit associations, and other global financial cooperatives.
The Central Bank’s participation in this review represented an opportunity for us to invite external scrutiny on the performance of our functions in relation to credit unions for the purposes of ensuring that we measure up to international standards and the expectations of sector stakeholders. In view of the substantial changes in the regulatory regime and operating environment for credit unions in Ireland since 2012, including the introduction of a strengthened regulatory framework for credit unions and the voluntary restructuring of the credit union sector that is currently underway, the peer review report provides a timely examination of Ireland’s legislative, regulatory and supervisory framework in relation to credit unions.
Registrar of Credit Unions, Anne-Marie McKiernan said: ‘We welcome the ICURN team’s assessment that the Central Bank effectively performs its functions in the regulation and supervision of the credit union sector and that we have effectively undertaken the demanding task of introducing a comprehensive regulatory structure for credit unions. The Central Bank recognises the importance and benefits of an external review of its regulatory performance in relation to credit unions and we welcome the suggestions of the ICURN team in relation to enhancing our performance as an effective regulator. We are developing an action plan to enhance our current practices in the areas referred to in the ICURN team’s recommendations, including communications and guidance issues, and aspects of our supervisory approach. We are conscious of the need for clear communication in a time of substantial change for the credit union sector and will endeavour to further develop our communications with credit unions, including through the new on-site engagement model we are developing for 2016 and beyond, and the dialogues on business model development planned to commence later this year. The Central Bank wishes to express its appreciation to the ICURN team for carrying out this important piece of work.’
About the external review
Under legislation, the Bank is required to undertake an international peer review of its regulatory performance at least every four years. The first such reviews were progressed during 2014 in the areas of credit institutions supervision and credit union supervision, insurance supervision, markets supervision and consumer protection. The peer review in relation to credit unions was carried out in 2015.
About the International Credit Union Regulators’ Network
ICURN is an independent international network of credit union regulators formed in 2007, with members drawn from over 30 countries and jurisdictions, including Ireland, other EU countries (e.g. UK, Poland and Lithuania), USA, Canada and Australia. ICURN facilitates the sharing of information and positions of common interest among financial cooperatives, initiates research on financial cooperatives and their oversight, identifies best practices and provides direct access to an exclusive forum for though in issues critical to sound credit union regulation.
About the ‘Guiding Principles for Effective Prudential Supervision of Cooperative Financial Institutions’
The Guiding Principles for Effective Prudential Supervision of Cooperative Financial Institutions were released by ICURN on Sept. 16, 2011. Taking into account financial cooperatives' unique nature and using the Basel Committee's Core Principles for Effective Banking Supervision as a guide, the document developed by ICURN incorporates 21 principles conducive to developing an effective supervisory system for credit unions, caisses populaires, savings and credit co-operatives, savings and credit associations, and other global financial cooperatives.
Комментарии