Levies – Some good news on the Resolution Levy

The Credit Institutions Resolution Fund Levy (Amendment) Regulations 2020 (S.I. No. 406 of 2020) which was published this afternoon reduces the resolution levy from 0.0274% to 0.0259%.

 Summary of new Regulations

  • The Resolution levy has been reduced from 0.0274% to 0.0259% of total assets
  • The new levy is payable 28th February 2020.
  • The new levy is calculated on total assets as of 30th June 2020

As total assets increase in Credit Unions, we would prefer to see a greater deduction in the resolution levy, nonetheless we welcome the decrease in % of the levy payable.

Industry Funding Levy

As we know, this coincides with an increase in the Credit Union Industry / Regulatory Levy.

Industry Funding Levy:

  1. The rate applicable in 2020 Industry Funding invoices has been set at .01493% of Total Assets at 31 December 2019 for each credit union
  2. This rate will result in recovery of 20% of the cost of regulating the sector in 2019
  3. It aims to recover c€2.75m from Total Assets of c€18.47bn
  4. Previously the rate was .01% of Total Assets.
[The Central Bank Act 1942 (Section 32d) Regulations 2020 [S.I. No. 345 of 2020]

This increase in the Industry Funding Levy is concerning on a number of levels. CUDA wrote to the Minister for Finance and set out our concerns on the basis of:

  1. Its impact on the operating model of credit unions
  2. The impact on affordability
  3. Paying the costs of services that do not form part of “regulation” or “supervision”

For further information on the Industry Fund Levy please see Info Briefing October 2002 Vol. 1. There will be a further consultation on the Industry Funding Levy, and we will keep you updated on that.

If you have any queries in relation to this Briefing Note, please email on

elaine.larke@cuda.ie

kevin.johnson@cuda.ie