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The Minister for Finance, Michael Noonan, TD, today welcomed the announcement of a move by the Board of the Irish League of Credit Unions to engage with the Central Bank of Ireland in the establishment of a new statutory stabilisation / resolution mechanism for credit unions operated by the Central Bank.

The Minister said that the financial crisis has changed the profile of risk for all financial service providers including credit unions. It is appropriate, therefore, that the structures that protect the savings of members should be refreshed and renewed. The initiative by the Board of the League to enter into discussions on the establishment of a new resolution framework managed by the Central Bank will greatly enhance the stability of the sector into the future, protecting the core values of the credit union movement and enabling it to expand services to members seeking a secure place to deposit their savings and a reliable source of credit on fair terms and conditions.

The Minister praised the work of the League over more than two decades in managing the Savings Protection Scheme (SPS). The SPS is owned and operated by the Irish League of Credit Unions. It was established by them in 1989 to protect the savings of ILCU credit union members in Ireland – North and South. The SPS has protected members’ savings by making available financial and other assistance to help credit unions experiencing difficulties.