CUDA, the credit union representative and lobby group for Ireland’s largest credit unions has welcomed today’s Oireachtas report on their review of the Credit Union sector.
Speaking at the launch, Kevin Johnson, CEO, Credit Union Development Association,
“We welcome the excellent work of the Joint Committee on Finance and its recognition that immediate priority should be given to a full review of the simplistic and outdated lending limits and concentration limits. We believe that the Implementation Group, which represents all stakeholders, is best positioned to carry this out and that very constructive work has resulted in a proposal being submitted to the Central Bank.”
CUDA say that as advocates of a tiered regulation system for credit unions in Ireland, they were pleased with the Committee’s acknowledgment of the importance of such a system.
Mr. Johnson continued,
“We would like to see the urgent introduction of proportionate regulations as set out by the Commission, which will allow some credit unions to continue offering basic savings and loans only, while allowing other credit unions to develop and offer a greater range of services, provided they have what is necessary to manage the additional inherent risks.
While credit unions share the same set of values, in attempting to devise a workable solution to allow credit unions develop their businesses appropriately it must first be recognised that we do not have a homogenous sector and that is why tiered regulation is so important. The Credit Union Act recognises that each credit union will determine what services will be available to their members in their common bond, and the Act also requires regulations to be proportionate based on the nature, scale and complexity of the credit union business model.”
The network group however say that while some progress is being made to allow credit unions invest in social house projects by Tier 3 Approved Housing Bodies more needs to be done to move this along.
Mr. Johnson went on,
“CUDA believes credit unions should also be permitted to lend directly to AHBs and local authorities for both social and affordable housing. The required enhancement to the Credit Union Act is set out in Appendix 1 of the Committee’s report.”
CUDA have set out some of the highlights of the report from their perspective including the following:
Note to the Editor
CUDA, the Credit Union Development Association, was legally incorporated in 2003. In its early days it was the representative voice, on behalf of its owner member credit unions, with legislators and regulators. It has since evolved and now, as well as providing a ‘voice’, it is increasingly providing support facilities in the areas of regulatory compliance, risk management, shared services and competency development.
CUDA is a credit union owned network that enables member credit unions to engage in beneficial activities which would not have proved possible to do as single stand-alone entities. We manage the diverse interests of the members within the network to the mutual benefit of the network. In acting as a catalyst for the growth and development of credit unions, CUDA now makes many of its support services available to all credit unions.