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The Minister for Finance, Mr Michael Noonan T.D., has today, published the Credit Union Advisory Committee (CUAC) Review of Implementation of the Recommendations in the Commission on Credit Unions Report.
The Credit Union Advisory Committee Report identifies that the vast majority of recommendations made by the Commission on Credit Unions have been implemented. It reveals that a considerable amount of work has been expended by Credit Union stakeholders in establishing more effective governance and regulatory requirements.
CUAC has produced a significant Report providing an in-depth analysis of the sector from a financial perspective and met with a range of stakeholders to ensure a balanced report providing focused and effective recommendations.
Commenting on the work carried out by the Credit Union Advisory Committee, the Minister for Finance, Mr Michael Noonan T.D. remarked
“I commend the Credit Union Advisory Committee in producing, in a short timeframe, a thorough and insightful review of the Commission on Credit Unions’ recommendations and of their impact on the Credit Union sector. I am committed to implementation of these recommendations in a cohesive manner together with the Central Bank, Credit Union Representative Bodies and indeed Credit Unions themselves.”
“This is a very positive day for Credit Unions in Ireland, as the Credit Union Advisory Committee listened to many stakeholders’ opinions and utilised this information together with a comparative analysis of the financial characteristics of credit unions to present seven key recommendations which will progress the positive work already completed.”
“I am pleased to announce that I will establish an Implementation Group to oversee and monitor implementation of these recommendations, which will support Credit Unions in developing their business model. I look forward to receiving regular updates on developments.”


Notes for Editors
Members of the Credit Union Advisory Committee
The Minister for Finance appointed as Chair of the Credit Union Advisory Committee, Professor Donal McKillop, Professor of Financial Services, School of Management, Queen’s University, Belfast. The Minister appointed as members of the Credit Union Advisory Committee:
· Ms Denise O’Connell, Partner Audit and Assurance, Grant Thornton.
· Mr Joe O’Toole, Former Senator.
Purpose of CUAC Report
The purpose of this Report is to identify recommendations made by the Commission on Credit Unions and to examine their implementation, having regard to their impact on credit unions, and environmental changes that have occurred following publication of the Commission on Credit Unions Report. This report also takes account of the spirit/intention of the Commission, the not-for-profit mandate of credit unions and their volunteer ethos and community focus, while giving due regard to the need to fully protect members’ savings and financial stability. The need for credit unions to develop their business models and grow income in a prudent manner was also considered.
What was the Commission on Credit Unions?
The Government established the Commission on Credit Unions on 31 May 2011 to review the future of the credit union movement and to make recommendations as to the most effective regulatory structure for credit unions, taking into account their not-for-profit mandate, their volunteer ethos and community focus, while paying due regard to the need to fully protect members’ savings and financial stability. The Final Report of the Commission on Credit Unions was presented to the Minister for Finance, Mr Michael Noonan TD, on 31 March 2012.
Structure of the Report
CUAC’s Report provides an insight into credit union stakeholder views and visions for the sector and also contains a comparative analysis of the financial characteristics of credit unions in a range of areas over the three specific periods, 2007, 2011 and 2015. This information forms the basis for recommendations provided under seven specific headings:
1. Tiered Regulation;
2. Section 35;[1]
3. Consultation and Engagement with the Central Bank;
4. Governance;
5. Restructuring;
6. Business Model Development;
7. Additional Matters.
Programme for a Partnership Government commitment
This Report also fulfils one of the key credit union objectives as outlined in the Programme for Partnership Government which states that the Credit Union Advisory Committee (CUAC) conduct a review, and report by the end of June 2016, on the implementation of the recommendations outlined in the Report of the Commission on Credit Unions.

[1] Section 35 of the Credit Union Act 1997 as amended by the Central Bank Reform Act 2010 provides for the making of loans by a credit union and provides the Central Bank with certain regulation making powers. The legislation sets out limits on lending over 5 years and over 10 years. Section 35(2C) enables the Central Bank impose restrictions on a particular credit or on all credit unions in relation to a class of loan or a type of loan.