The RTS is applicable from 14th September 2019. The EBA has issued further clarification on meeting compliance with Strong Customer Authentication.
The Personal Micro-Credit Loan (PMC) – It Makes Sense Loan is now available in 109 credit unions plus an additional 156 sub offices (265 locations in total). All 109 credit unions are using the An Post Household Budget System for payroll deductions. A further 12 credit unions have now indicated to the PMC Working Group that they intend to start providing PMC lending in the near future.
Many credit unions who to date have not participated in the PMC scheme, indicated that the current maximum credit union lending rate of 1% per month has deterred them from partaking in the scheme. The 1% rate does not reflect the risk associated with this type of lending. The Credit Union Advisory Committee (CUAC) which advises the Department of Finance on credit union matters recommended in their latest report that the current maximum rate should be reviewed. A recent news article in the Irish Independent would suggest that the Department of Finance may soon progress the CUAC recommendation to permit an increase in the rate. Please note as follows:
Credit union rates will be allowed to double for small loans
Irish Independent (Tue, 11 Jun 2019)
An Post Household Budget have provided the latest update from the weekly figures of the 7th June 2019, which show the number of Personal Micro-Credit Loan (PMC) active and being repaid from An Post Household Budget.
|No. of CU PMC loan deductions currently taking place in the HB system||6489||6487|
|No. of loan deductions awaiting approval from CUs||40||45|
If your Credit Union has not engaged to date with PMC and you would like more information on the PMC initiative, please let us know to firstname.lastname@example.org.
Central Bank’s Currency Issue Division is concerned there may be a potential increased risk for Credit Unions, following recent spate of ATM robberies.
The Central Bank’s risk-based supervision in 2018 focused on continuing to strengthen credit union core foundations across governance, risk management and operational capabilities, according to the Central Bank of Ireland 2018 Annual Report, issued last week.
The Department of Finance have published a Consultation Paper titled “Capping the cost of Licensed Moneylenders and other regulatory Matters”. The consultation period runs to the 31st July 2019.
The new 2018 Regulatory Technical Standards for Strong Customer Authentication are effective from 14th September 2019. Exemptions from the requirements to apply Strong Customer Authentication are available to Payment Service Providers in certain circumstances.
CUDA’s Chair, CEO and members of the management team will meet with the Registrar of Credit Unions and other staff of the RCU on the 18th June 2019. Any concerns or issues would you like us to include on the Agenda and address at the meeting, please let us know.
The 2019 ICURN Peer Review of the Central Bank’s performance of its regulatory functions is currently underway. This review is assessing the legal, regulatory and prudential supervisory framework in place to fulfill the Central Bank’s responsibilities under Section 84 of the Credit Union Act, 1997 having regard to proportionality, nature, scale and complexity of credit unions operating in Ireland.