Following a public consultation process, the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 came into force for credit unions on 1 January 2016.
The regulations cover a number of areas including reserves, liquidity, lending, investments, savings, and borrowings, building on existing prudential and governance requirements in these areas. They build on existing prudential and governance requirements in these areas and include the establishment of types of categories of loans which credit unions may provide together with related limits, counterparty and maturity limits for investments and a maximum individual members’ savings limit of €100,000.
John Lowe the Money Doctor said “The EU Deposit Protection Scheme covers all members’ shares up to € 100,000 per person and continues to do so. As each credit union is independent, some of them impose their own thresholds with many having their maximum at € 50,000. Either way, savings are safe.”
Registrar of Credit Unions Anne Marie McKiernan said: “The Report of the Commission on Credit Unions made a number of recommendations regarding the strengthening of the regulatory framework for credit unions. These regulations mark a further important step in the development of a strengthened regulatory framework for the credit union sector and will contribute to the maintenance of the financial stability of the credit union sector. This is in line with our statutory objective to ensure credit unions protect the funds of their members.
“We will continue our focused engagement and dialogue with credit unions in order to understand how the sector envisages future development of the credit union business model and the implications for the regulatory framework. We are committed to reviewing these regulations and consulting with credit unions to update them where appropriate and as the sector further develops.”