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Finance Minister's statement on Credit Union report

Today saw the publication of the Interim Report of the Commission on Credit Unions. Speaking after the publication, Finance Minister Michael Noonan said:

The Interim Report of the Commission on Credit Unions provides important recommendations to strengthen the regulatory framework for credit unions, including governance and regulatory requirements. The Report also makes recommendations in relation to a stabilisation framework for credit unions. I will now examine these recommendations with a view to publishing legislation on the regulation of credit unions at an early date.

The Interim Report confirms that recent adverse financial and economic conditions in Ireland, allied with internal governance weaknesses in some credit unions and the absence of an appropriate statutory regulatory framework, have contributed to difficulties in the sector. The challenges ahead can, however, be overcome.

The Government recognises the important role of credit unions as a volunteer co-operative movement and the distinction between them and other types of financial institutions. The establishment of the Commission on Credit Unions and the publication of its Interim Report represent an important milestone in strengthening the credit union movement. The Commission will now focus on the future structure of the sector. It is important that any future model for the credit union movement is underpinned by legislation to strengthen the regulation and governance of credit unions together with a framework for stabilisation. I welcome the report.

As I stated last week, the Government will ensure all necessary measures are taken to ensure a stable credit union sector. The savings of credit union members are and will continue to be protected under the Deposit Guarantee Scheme. The work of the Commission will inform Government policy on the future of the credit union movement.

Read the full press release here

The following link is to a PDF fileView the full report in PDF format