CUAC calls for greater support for voluntary credit union Directors

Posted on: 28 Feb 2020

  • Call for increased clarity, certainty and transparency from the Central Bank in its engagements with the credit union sector

  • Call for increased support on Fitness and Probity for credit unions and a review of the application and administrative process by the Central Bank.

  • Call for production by the Central Bank of a credit union specific guide to explain PRISM and other regulatory inspections.

  • Call for Department of Finance and the Central Bank to review the current list of policies and regulations to ensure that the requirements are proportionate to the nature, scale and complexity of credit unions

The Irish League of Credit Unions (ILCU), the largest representative body for credit unions in Ireland, has today, Friday 28th February 2020, welcomed the report of the Credit Union Advisory Committee (CUAC) on research into the role of credit union Directors.
The CUAC report makes several recommendations. Most notably it outlines “the need for an engagement framework underpinned by an undertaking by the Central Bank for increased clarity, certainty and transparency in its engagements with the sector.”

CUAC recognises the credit unions’ unique structure and the role they play in the provision of financial services in Ireland. This recognition is something the ILCU has long called for from Government and the Central Bank.
Also of note is CUAC’s call for a review of policies and regulations pertaining to credit unions “to ensure that the requirements are proportionate to the nature, scale and complexity of credit unions and do not impede the functioning of the Board in its governance role”. This recommendation is welcomed as often times volunteer Directors are over burdened by the need to adhere to disproportionate regulations.   
Commenting on the CUAC research report, ILCU President Gerry Thompson said,
“I am heartened by the comprehensive response to the survey and focus groups conducted by CUAC as part of this research. Over 950 Directors from 83% of credit unions is an overwhelming response by any survey standard and one which makes the research robust and worthy of serious consideration by the Minister for Finance, his officials, and the Central Bank. The ILCU will do its utmost in working with these stakeholders in continuing to support our credit union Directors in the very important role they play in governing and developing their credit unions for the benefit of their local communities. As I have said on many previous occasions, we are a community based organisation, with a financial purpose. We are not a financial organisation that just happens to be based in a local community. I feel the CUAC research goes someway to recognising that uniqueness.”