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Dec 31 2024

New rules will allow all credit unions to make mortgage offer

By News

Landmark regulatory changes coming in during 2025 will mean every credit union in the country will be able to offer mortgages, business loans, current accounts and debit cards.

The changes are coming about due to the enactment of the Credit Union (Amendment) Act 2023, a piece of legislation that is set to transform the sector, according to Helen Carbery, the new chief executive of the Credit Union Development Association (CUDA), a representative body for the lenders.

She said: “We are at a landmark moment in the evolution of the role and value of the credit union sector in Ireland.”

The regulatory changes for credit unions coming in under the Credit Union (Amendment) Act 2023 was one of the most important pieces of credit union legislation to ever be developed, she said.

It will transform the whole credit union landscape, she added.

“It is thanks to this new legislation that for the first time ever, all credit unions will be able to offer a service or product such as a mortgage to a member of another credit union, under a formal arrangement with that other credit union.”

This effectively means that every credit union in the country will be able to offer mortgages, business loans, current accounts and debit cards.

Ms Carbery said smaller credit unions will be able to offer these services by essentially partnering with other credit unions or through credit union shared organisations.

“Importantly, the legislation enables credit unions to maintain their independence and uniqueness while they partner with others to provide the services needed by their members,” she said.

The act also modernises governance structures and reduces operational burdens on volunteer boards to enable credit unions to play a more active role in areas such as housing, SME lending, and environmental sustainability. The Credit Union (Amendment) Act 2023 also introduces the concept of the corporate credit union.

Often described as a central credit union or “a credit union for credit unions”, a corporate credit union would support collaboration between credit unions, and enable them to better manage their resources and expand their lending capabilities, she said.

Ireland is not alone in grappling with how to regulate a diverse credit union sector. In countries such as Canada and Australia, regulatory systems have successfully enabled credit unions to thrive while ensuring appropriate oversight, Ms Carbery said.

The next phase of the implementation of the Credit Union (Amendment) Act 2023 includes the drafting of new regulations for the development and operation of a corporate credit union by the Central Bank of Ireland.

This will be done in consultation with the credit union sector.

“This is a very exciting development in the year ahead as it could pave the way for credit unions to gain greater access to funding and more opportunities to expand their offerings.”

Ms Carbery has just taken over as head of CUDA following the retirement of Dr Kevin Johnson from the role.

In her recent speech at the Credit Union Annual Conference in Killarney, the outgoing deputy governor of the Central Bank, Sharon Donnery, said the focus should allow it to seize the opportunities that the various credit union regulations have presented.

Ms Donnery said that since 2014, the number of credit unions overall has halved and the number of large credit union has more than doubled. Total assets in the sector have grown by 50pc from €14bn in 2014 to just over €21bn in 2024.

She said credit union reserves have strengthened over the last decade and total loans have grown by 73pc in the same period.

Ms Carbery said to increase their loan book, the credit sector is focused on how to remain relevant to their communities with useful and attractive offerings.

Dec 11 2024

CUDA Comments on the Central Bank of Ireland’s Public Consultation on Proposed Lending Limit Changes

By News

Commenting on the Central Bank of Ireland’s public consultation regarding significant changes to lending limits and underwriting requirements following the enactment of the Credit Union (Amendment) Act 2023, Kevin Johnson, CEO of the Credit Union Development Association (CUDA), said:

“we are pleased that this modernising of the lending framework regulations for credit unions is in line with our request submitted to the Central Bank of Ireland in February ’24.

The Credit Union (Amendment) Act 2023 was designed to give credit unions greater flexibility, enabling them to engage in loan participation and syndication, which allows lending risks to be shared among credit unions. The combination of the legislation and these proposed regulatory changes mark a major step forward for the sector, empowering credit unions to enhance their offerings in both the mortgage and business lending markets. A significant move towards our vision where everyone in Ireland will have access to all Credit Union services​.

Credit unions have already begun to account for a growing share of mortgage switches. With these enhanced lending limits, more credit unions will be attracted to helping members finance their home purchase and collectively the sector is  poised to more than triple their current mortgage loan books to over €2 billion in the coming years, further establishing themselves as strong contenders in the Irish mortgage market.

In 2017, the average credit union mortgage was approximately €110,000. Today, that figure has risen to over €200,000, though it remains below the banking sector average, which exceeds €300,000. Credit unions cater to a broader range of applicants, as reflected in the average household income of their mortgage holders, which is around €75,000—significantly lower than the €100,000 average for bank mortgage customers.

Business lending has also seen considerable growth across the sector, supported by the recruitment of specialists in this area. These enhanced lending limits and positive adjustments to underwriting requirements will enable credit unions to compete more intensively for business loans within their local communities.

Under the new legislation, credit unions will also be permitted to collaborate with one another to offer services such as home loans to members of other credit unions. For the first time, credit unions will have the ability to refer mortgage or business loan applications to other credit unions when they are unable to provide the loan themselves. This effectively means that every credit union in the country will be able to offer mortgages—a significant milestone for the sector.

The appetite for credit union mortgages continues to grow among the public, reflecting a clear demand for alternatives to traditional banks. Credit unions are stepping up to meet this demand by upskilling, modernising their offerings, and bringing much-needed competition to the market. For several years, regulators have encouraged credit unions to expand their lending, and the sector’s efforts are now bearing fruit.

The success of credit union mortgage lending was recently acknowledged by Sharon Donnery, Deputy Governor of the Central Bank of Ireland, who stated: ‘Over the years since these lending regulations were introduced, I am happy to say that our supervisory experience tells us that many credit unions in the sector have built this capacity, and they have prudently engaged in business and mortgage lending. 11% of Credit Union loan books are now in mortgages.’

Credit unions are uniquely positioned to drive competition and provide real alternatives in Ireland’s financial services market. These proposed changes will help credit unions continue their phenomenal growth in lending, further cementing their role as key players in the Irish financial landscape.”

ENDS

 

Nov 21 2024

CUDA Urges Political Parties to Abolish DIRT on Savings Below €10,000 to Promote Financial Resilience

By News

As Ireland approaches the general election on November 29th, 2024, the Credit Union Development Association (CUDA) is calling on political parties to commit to abolishing Deposit Interest Retention Tax (DIRT) on all savings below €10,000. CUDA argues that this change would encourage a culture of saving, particularly among low- and middle-income households, and align with government goals of promoting financial responsibility and reducing reliance on debt.

Speaking ahead of the election, Kevin Johnson, CEO of CUDA, said:
“Removing DIRT on modest savings balances is a simple yet effective policy to incentivise saving and help people build financial resilience. For many low- and middle-income households, this could mean the difference between relying on high-cost credit during emergencies or having a financial safety net in place.”

Encouraging a Savings Culture

Credit unions, which play a vital role in fostering financial responsibility, offer competitive savings rates that already benefit communities across Ireland. And while there has been much talk about the savings offerings from some overseas providers, many Irish credit unions offer strong rates on deposit savings..  Dividend payments are also on the increase with many credit unions expected to declare higher rates at their AGMs in December and January.

Removing DIRT on savings below €10,000 would amplify these benefits, particularly for low- and middle-income earners.

CUDA estimates the cost to the Exchequer to abolish DIRT on modest savings would be approximately €18 million annually, based on current deposit levels. However, this cost would be outweighed by the societal benefits of a stronger savings culture, reduced reliance on state supports during financial crises, and the promotion of long-term financial stability for households.

A National Need for Financial Resilience

As interest rates have risen, Irish savers are finally beginning to see better returns on their deposits. However, the 33% DIRT tax disproportionately impacts those with smaller savings, making it harder for them to accumulate wealth or build financial security.

“Low- and middle-income savers are penalised for their prudence under the current system and we are very cognisant of the high number of people who do not have an emergency or ‘rainy day’ fund,” said Johnson.
“By abolishing DIRT on savings below €10,000, the government can help these households build financial stability while encouraging others to begin saving. It’s a practical solution that supports the national goal of fostering financial responsibility and reducing reliance on debt.”

A Broader Economic Impact

CUDA’s proposal aligns with ongoing efforts to boost financial literacy and savings habits nationwide. Recent government data highlights a rise in savers benefiting from energy efficiency grants and other schemes, underscoring the public’s willingness to save when incentivised.

Additionally, as credit unions continue to provide competitive deposit offerings, abolishing DIRT would help them play an even greater role in supporting their members’ financial wellbeing. This initiative would not only assist individual households but also contribute to Ireland’s broader economic resilience.

A Call to Action for Political Parties

CUDA is urging all political parties to prioritise the abolition of DIRT on savings below €10,000 as part of their election manifestos and commit to its implementation in the next Dáil.

Kevin Johnson concluded:
“The benefits of this proposal are clear. It would encourage prudent financial behaviour, reduce reliance on debt, and promote economic resilience, particularly for those on low and middle incomes. As we approach the general election, we hope all political parties will recognise the value of this initiative and support its inclusion in their plans for government.”

 

A full copy of the CUDA General Election Manifesto is available here.

ENDS

Notes to Editors:

  • Deposit Interest Retention Tax (DIRT) is currently charged at a rate of 33% on all interest earned on deposits.
  • Credit Union Development Association (CUDA) represents progressive credit unions across Ireland, supporting them with a strong voice, leadership, and practical solutions that enhance their strategic and operational capabilities.

 

Nov 20 2024

Credit Unions Welcome Deputy Governor’s Positive Remarks and Anticipate Upcoming Regulatory Changes

By News

CUDA warmly welcomes the positive comments made by Deputy Governor Sharon Donnery in her recent speech, “Evolving with the times, credit unions in a changing landscape.” Her recognition of the significant progress made by credit unions over the past decade, particularly in terms of asset growth, diversification of services, and strengthened governance, is greatly appreciated.

Reflecting on the speech, Kevin Johnson, CEO CUDA stated “We would like to extend our thanks to the CBI Deputy Governor Sharon Donnery for acknowledging that “many credit unions in the sector have built this capacity, and they have prudently engaged in business and mortgage lending.”

This recognition is a testament to the hard work and dedication of credit unions. He added “we firmly believe that the existence of the SAM platform for mortgages and business lending, along with their related support services, has played a significant role in this achievement. The SAM platform has provided the necessary tools and resources to help credit unions expand their lending capabilities and better serve their members.”

“We are particularly encouraged by the Deputy Governor’s announcement of planned changes to the concentration limits and underwriting requirements. These changes, aimed at enabling increased lending activity, represent a significant opportunity for credit unions to further support their members and communities.”

The proposed regulatory adjustments will be subject to a public consultation in early December. CUDA looks forward to actively participating in this consultation process and making a comprehensive submission on behalf of our member credit unions. Our goal is to ensure that the final regulations support the sustainable growth and development of the sector, allowing credit unions to better serve our members’ needs.

We thank Deputy Governor Donnery for her continued support and wish her every success in her new role at the ECB, and we look forward to working closely with the team in the Registry of Credit Unions to implement these important changes.

Oct 24 2024

Helen Carbery Appointed CEO of Credit Union Development Association (CUDA)

By News

The Credit Union Development Association (CUDA) has today announced the appointment of Helen Carbery as its new Chief Executive Officer. Helen steps into the role following the decision of Dr. Kevin Johnson, who led the organisation as CEO for 16 years, to retire from CUDA.

Helen Carbery brings a wealth of experience and leadership to CUDA, having worked in financial services for over two decades. Her extensive expertise spans retail banking, capital markets, insurance, and wealth management. Throughout her career, she has held numerous executive roles – most notably in AIB where she led large business, product, lending and change teams in a highly regulated environment.

Reflecting on her appointment, Helen expressed her enthusiasm for building on the significant strategic and legislative progress CUDA has delivered for the sector in recent years.

Helen’s vision for the future includes a society where everyone in Ireland has access to expanded credit union services to support their lives. The protection of the unique role of credit unions in their communities will be a key priority for Helen in her new role. She is committed to continuing to develop CUDA’s leadership, effectiveness and influence.

Commenting on her appointment, Helen said:

“I am honoured to take on this role and build upon the strong foundation laid by CUDA and their many successes to date. My focus will be on continuing the important work of CUDA, prioritising the needs of members and communities advocating for the credit union sector, driving innovation, and ensuring that we provide strong leadership and development opportunities. I look forward to working with the CUDA team and its members as we navigate the challenges and opportunities ahead.”

Sean Murray, Chairperson of CUDA’s Management Committee welcomed the appointment,

“We are delighted to welcome Helen Carbery as our new CEO. Helen’s exceptional track record in financial services, combined with her leadership experience, makes her the ideal person to guide CUDA into the future. We look forward to working with her as we continue to support the credit union sector and drive positive change.”

“Helen succeeds Kevin Johnson, who leaves a strong legacy after 16 years as CEO. We thank Kevin for his contribution and wish him well in his future endeavours. We are confident that Helen’s leadership will continue to advance our mission of supporting the growth and success of credit unions across Ireland”.

Ends

Note to the editor

 

Helen Carbery Bio

Helen’s recent professional experience includes serving as a business consultant with Davy as well as her accomplished career in executive roles at AIB, where she managed product and lending portfolios and undertook strategic business design, investor deal structuring, credit analysis, and capital market transactions.

Helen has consistently demonstrated a people-centric approach to driving team innovation and development, with a focus on fostering a strong risk and ethical culture.

In addition to her commercial and strategic leadership experience, Helen is professionally qualified across multiple disciplines. She is a Chartered Accountant, Qualified Tax Consultant, and holds a QFA (Qualified Financial Advisor) certification from the Institute of Bankers. More recently, she also earned a Diploma in Company Direction from the Institute of Directors and a Professional Certificate in Responsible & Sustainable Finance.

Helen has served in various governance roles, including as Chair of AIB Insurance Services, a PCF (Pre-Approval Controlled Function) role approved by the Central Bank of Ireland (CBI). She is also a volunteer non-executive director on the YMCA Board (youth services charity) and currently chairs its development sub-committee.

CUDA, the Credit Union Development Association, was legally incorporated in 2003. In its early days, it acted as the representative voice for owner member Credit Unions, with legislators and regulators. The organisation has since evolved and in addition to providing a ‘strong voice’, has become increasingly engaged in providing support facilities in the areas of regulatory compliance, shared services and competency development.

CUDA is a credit union-owned network of 50 member credit unions that enables them to engage in beneficial activities which would not have proved possible to do as single stand-alone entities.

Sep 19 2024

20% Increase in Consumers using Credit Union Services

By News

Following the publication by the  Department of Finance of the Consumer Sentiment Banking Survey Report today, Kevin Johnson, CUDA CEO said “We are delighted to see a 20% increase in the number of consumers using the services of credit unions (up from 30% in 2023 to 36% in 2024). With the widespread rollout of digital services across the sector and the increase of new products from current accounts to mortgage and business loans, this significant increase in consumers accessing our services isn’t that surprising.  

Furthermore, given the changes in the pipeline, we expect the numbers using credit unions to increase even more. This autumn for example will see Irish credit unions become an even stronger contender in the Irish mortgage market. Thanks to legislative changes signed last February, in the last three months of this year, every credit union in the country will be able to offer mortgages as credit unions will be able to refer mortgage applications to other credit unions should they not be in a position to provide a mortgage themselves. As this will be the first time ever that credit unions will be able to do so, this will be a watershed moment for credit unions and one that will see them eat into more of the banks’ market share in the coming years.   

Credit unions will also be able to refer applications for other products to another credit union – such as business loans, current accounts and debit cards. Credit unions will essentially be able to partner with other credit unions to offer their members a wider selection of products. 

Ultimately, it will be consumers who will be winners if credit unions can eat into more of the banks’ mortgage pie – and indeed if more credit unions are used by consumers for their day-to-day financial services. Credit unions are member-owned financial institutions, so each credit union is essentially owned by consumers, with consumers at the heart of the decisions made by these organisations. This is one of the reasons credit unions can be relied on to provide affordable financial services to their members, with any surpluses reinvested to benefit their members.”

Kevin Johnson, CEO of the Credit Union Development Association (CUDA)

Jul 12 2024

Chief Executive Officer, Credit Union Development Association (CUDA)

By Uncategorized

 

Incorporated in 2003, CUDA is a forward-looking development association representing and serving 50 progressive Credit Unions in Ireland with a strong voice, leadership and the provision of value-creating solutions.  CUDA plays a significant role in advocacy and policy development for its membership, and for the sector overall.  In addition, CUDA solutions and services enhance the strategic effectiveness and operational capabilities of member Credit Unions.  CUDA’s experienced team operates with a sense of purpose and a clear vision to improve the financial, social and environmental well-being of credit union members and of the communities they serve.

For further information on CUDA, please visit:  Credit Union Development Association (CUDA)

The Role

This is an exciting opportunity for a proven, inspiring leader to contribute to CUDA’s next phase of development and change.  Reporting to the Management Committee, the CEO will provide vision, strategic leadership and effective management across all functions of CUDA to ensure it achieves its overall aims and purpose regarding advocacy & policy development and the provision of business solutions to its members.  Working at all times to the highest level of governance and integrity, the CEO will engage strategically with senior decision-makers and stakeholders, including Government Departments and the Central Bank, to ensure that the evolving needs of member Credit Unions are addressed.  This position will require significant networking and involvement in the public domain and on national media, regarding a diversity of matters within the sphere of influence and of relevance to CUDA.

The Person

This position requires an inspirational and dynamic leader with an outstanding track record of achievement within a relevant organisation.  With a comprehensive understanding of the opportunities and challenges within the Credit Union sector, the appointed person will have the capacity and commitment to build on CUDA’s achievements to date.  They will oversee the continued development and implementation of CUDA’s Strategy through a dynamic working relationship with the Management Committee of CUDA, the National Council, member Credit Unions, the CUDA Team and all other relevant stakeholders.  Possessing a relevant degree or other professional qualification, the appointed candidate will have exceptional stakeholder management abilities in addition to exemplary interpersonal and communication skills.

To apply, please email a CV and supporting letter to: Luke.Freeley@Lansdownesearch.ie

Closing date for receipt of applications is 12:00 Noon on Thursday, August 15th, 2024.

For a confidential discussion, please contact Luke Freeley, Partner, Lansdowne Executive Search, at +353 (0)87 240 4889.

Candidates for this role will be sourced through both advertising and executive search processes.

In line with its Diversity, Equality and Inclusion policy, CUDA is seeking a balanced pool of candidates.

Feb 21 2024

Comment from Dr. Kevin Johnson, CEO of the Credit Union Development Association (CUDA), on key changes coming into force today February 21, 2024 as a result of enhancements to the Credit Union Act

By News

Credit unions processed approximately €200m in new mortgage lending in 2023. As a result of the legislative changes which came into force today, we anticipate this volume doubling each year for the next couple of years. We believe the credit union mortgage lending could reach €1bn per annum within 3 to 4 years which could put credit unions in the top 5 mortgage lenders.

For the first time, credit unions can now offer a service or product such as a home loan to a member of another credit union – under a formal arrangement with that other credit union. For householders and aspiring homeowners, this means there will be greater access to fairer mortgages as credit unions will be able to refer mortgage applications to other credit unions should they not be in a position to provide a mortgage themselves. This effectively means that every credit union in the country will be able to offer mortgages.

Credit unions can also refer applications for other products to another credit union – such as current accounts, debit cards, and business loans. Credit unions can now essentially partner with other credit unions to offer their members a wider selection of products.

This new collaboration on lending could generate an additional €2.2bn in lending each year for credit unions.

Credit union members will have more access to digital and automated services as a result of the enhancements to the Credit Union Act. This increased digitalisation will generate cost savings for credit unions in a number of areas. For example, the ability to make credit union annual reports available online will save credit unions an estimated €75m a year in postage and printing costs (see Appendix). All of these cost savings will then be used to deliver even better and lower-cost products to our members.

In addition, increased digitalisation will make it easier for credit unions to sign up new business members, and lend to these businesses– in this regard, we estimate that digitalisation will boost business lending alone by €100m a year.

The changes that come into force today (February 21, 2024) are just the first of a suite of enhancements to the Credit Union Act in the pipeline. Other changes in the pipeline are the establishment of credit unions for credit unions (aka Corporate Credit Unions) and the ability of credit unions to invest in shared services – these will help credit unions provide maximum efficiency for their members by sharing costs and expertise. This in turn will enable credit unions to offer a wider range of lower-cost loans and other products to their members, as well as more favourable returns on savings.

ENDS

 

Appendix

 

 

 

 

Oct 18 2023

CUDA welcomes the passing of the Credit Union (Amendment) Bill at Committee Stage

By News

Mortgage volumes to double each year and SME services to be available across the sector

Commenting as the Credit Union (Amendment) Bill passed at Committee Stage, Kevin Johnson, CEO of CUDA which works with 50 credit unions, said

”At a time when there is a significant housing challenge, a climate change crisis, a looming pension crisis and large-scale bank branch closures, CUDA believes that the Credit Union (Amendment) Bill will immediately deliver increased finance options for individuals, small businesses and for community organisations.

The new proposals will facilitate real collaboration between credit unions. Each credit union is a separate legal entity with its own board and management team, and up to now, they are not permitted to share business. These changes will permit credit unions to collaborate, introduce loans to each other and collectively share loans. They will be able to establish a credit union for credit unions and have greater opportunity to invest in credit union owned service organisations. These changes will help credit unions make a greater financial, social, and environmental contribution as their legislation framework is modernised.

For householders and aspiring homeowners, there will be greater access to fairer mortgages as credit unions will be able to refer mortgage applications to other credit unions should they not be in a position to provide it themselves. This effectively means that every credit union in the country will be able to offer mortgages. Credit unions will process approximately €200m in mortgages in 2023. Following the enactment of this legislation, we anticipate this volume doubling each year for the next couple of years. While the average mortgage interest rate across banks has increased significantly, it has actually decreased across the credit union sector.

For local community organisations seeking larger loans, there will be more access to affordable finance options as their local credit union will be allowed to co-lend and share loans with other credit unions.

For small business owners, it will be a lot easier for the business itself to qualify to become a member of a credit union and therefore access the ever-increasing range of products and high-quality award-winning personal service.

For all credit union members, the changes will allow greater digitalisation of activities to complement the renowned face-to-face personal service.

For the credit unions themselves, they will be able to invest in shared services and establish credit unions for credit unions – this will help provide maximum efficiency for their members by sharing costs and expertise.

Allowing credit unions to do more business through these changes, could effectively see their lending double, increasing to over €10bn.

We extend our sincere appreciation to both Minister Jennifer Carroll-MacNeill and her predecessor Minister Sean Fleming for their invaluable support and significant contributions in helping advance the credit union mission”.

Amendments to Credit Union legislation

Supporting investment in collaboration

Enhanced collaboration is central to the future of the credit union movement

  1. Proposal to recognise Credit Union Service Organisations (CUSOs) in the Credit Union Act as authorised investments;
  2. Proposal to introduce Corporate Credit Unions as entities through which credit unions can further collaborate.

Improving members services

Enhancing the Common Bond to ensure members can access the fullest range of services

  1. Proposal on the referral of members to allow for the introduction of members to other credit unions to access other services/products;
  2. Proposal to allow credit unions to engage in loan participation lending;
  3. Proposal to allow for credit unions to lend directly to certain classes of public bodies;
  4. Proposal to ensure that clubs, societies, and companies based in a common bond are members;
  5. Proposal to make an annual report available to members electronically, e.g. via the credit union website;
  6. Proposal that every credit union publish a digital map or provide a description of their common bond on their website and in their annual report,

Supporting improvements in Governance

Enhanced governance to enable boards to focus less on operational matters and more on strategy and business models.

  1. Proposal to enhance the role of the CEO in relation to the board by allowing flexibility to add the CEO as a board member;
  2. Proposal to amend the minimum number of board meetings from ten to six;
  3. Proposal to allow greater flexibility in requirements to review policies from an annual basis to every three years;
  4. Proposal to allow the Board to delegate loan rejection appeals to the executive team;
  5. Proposal to amend the language in legislation related to the responsibility for approving loans and membership – this will facilitate the use of modern technologies.
Nov 30 2022

Credit Union Development Association (CUDA) delighted to see publication of the Credit Union (Amendment) Bill 2022

By News

Over many years credit unions have operated within outdated legislation – legislation not fit for purpose in a modern era. For some time now, CUDA has called on the Government to introduce enhancements to the existing credit union legislation to ensure credit unions can reach their potential on behalf of their members.

Today, the Government has published a new Credit Union (Amendment) Bill. On behalf of its members and the credit union sector at large, CUDA welcomes this development. According to Kevin Johnson, CEO CUDA, “this unique opportunity will enable credit unions to offer and deliver more benefits through enhanced products and services to existing and future credit union members”.

Credit Union legislation was last overhauled 10 years ago by the Credit Union and Co-operation with Overseas Regulators Act 2012.

The published amendments will allow greater collaboration and choice when developing credit products and offerings to consumers such as sharing large community project loans amongst a number of credit union participants (“loan sharing” or “loan participation”), and the ability to offer a full range of services to consumers, irrespective of the fact that a credit union may not have that product themselves e.g. mortgages, by introducing the member to a colleague credit union that does offer the product or service (“loan introduction”).  These are standard practices amongst credit unions in other jurisdictions such as Canada.

CUDA particularly welcomes the changes that recognise the great work of volunteer directors, who provide a professional service pro bono. The changes will allow them to focus more on the overarching governance and strategic direction and policy making of the credit union, while allowing a credit union assign new roles, focusing on implementation and operations, to its professional management team.

There is no doubting the trust members place in their credit union. The relationship is unique. CUDA is pleased that the legislative changes will allow credit unions continue their special relationship with members and the community through environmentally friendly methods – including the introduction of digital enhancements to their existing services and facilitating additional loans to the community. However, CUDA is quick to note that credit unions are very aware of the importance of face-to-face interactions with their members. Something that is greatly diminishing in other areas of the banking.

CUDA commends the great work achieved by all stakeholders, noting that the process started out with interested parties having differing views and priorities. The pandemic brought an additional layer of complications. CUDA says that the published Bill is an example of what can be achieved through meaningful cooperation.  CUDA would like to take the opportunity to express its appreciation for the productive contributions of Minister of State, Séan Fleming TD, Minister for Finance, Pascal Donohoe TD, the team at the Department of Finance led by Brian Corr, the Registrar of Credit Unions, Elaine Byrne, and her team at the Central Bank, and our colleagues in CUMA, ILCU and NSF.

CUDA looks forward to the speedy implementation of the legislation to ensure credit unions can continue to deliver their first-rate service – ensuring the best outcomes for credit union members, their communities and the wider Irish economy.