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Nov deadline for Cred Union CB deposits

Friday, September 21 11:50:04

The Minister for Finance today signed in to law an Order that gives Ireland’s credit Unions until the end of November to set up deposits with the Central Bank.

He signed in Section 4 of the Financial Services (Deposit Guarantee Scheme) Act 2009 for credit unions, giving them to 30th November 2012 to set up deposits.

From that date, each credit union will be required to maintain in the Deposit Protection Account at the Central Bank of Ireland, an amount equal to 0.2pc of the deposits and shares held on behalf of members.

Protection available to credit union members under the Deposit Guarantee Scheme remains unchanged up to €100,000 per depositor per financial institution, Minister Michael Noonan said.

He said that he believes that this is the appropriate time to commence the requirement for credit unions to maintain the relevant deposit at the Central Bank. “This measure is recommended in the Report of the Commission on Credit Unions and fulfils a commitment under the EU/IMF Programme of Support.”

The Minister today also said he has signed an Order bringing Part 3 of the Central Bank Reform Act 2010, as it applies to credit unions, into operation from 24th September 2012.

From that date, the Central Bank of Ireland will have powers to set out Regulations and a Code of Fitness and Probity for credit unions.

The Central Bank intends to introduce the new standards on a phased basis and consultation with the sector on the implementation approach is due to begin by the end of this year.

“The Commission on Credit Unions dealt at length with the Governance Standard to be introduced for credit unions and its Report made clear recommendations on the roles and responsibilities of the chair, board and management. The Report deals with fitness and probity, skills, and the need for robust systems, processes and controls. As set out in the Report of the Commission on Credit Unions many of the governance changes in credit unions will be phased in over time and will be calibrated according to the size and complexity of the credit unions to which they apply,” Minister Noonan said.

This fulfils a commitment under the EU/IMF Programme of Support.