CUDA welcomes the announcement by the Minister for Finance of reductions in the 2021 levies for both the Credit Institution Resolution Levy [down c6%] and the Credit Union Stabilisation Levy [down c90%]. In particular, we appreciate Minister Donohoe’s decision to heed our concerns in relation to the Stabilisation Fund levy.
While CUDA continues to support the purpose of a Stabilisation Fund, as it currently stands it has yet to be claimed against as it is both difficult and costly to access. CUDA did propose that the target size of the Fund should now be regarded as succeeded and therefore the levy be set at 0%, and we requested the Minister to carry out a review of the Scheme to see how it might be improved.
We look forward to its criteria and status being included in the upcoming Review of the Policy Framework for Credit Unions under the Programme for Government.