Minister Donohoe has further engagement with the Credit Union Sector to discuss the Covid-19 situation

The Minister for Finance and Public Expenditure & Reform, Paschal Donohoe TD, this week held a teleconference call with representatives of the credit union sector. This was a follow-on call from the call the Minister had with the sector on 23 March. The Minister welcomed the ongoing work of the credit union sector in supporting its members experiencing difficulties due to COVID-19.

The Government continues to support credit unions as a provider of essential services to their members, including access to income, savings, credit, and to payment services.

Minister Donohoe said:

“Yesterday, I had another constructive conference call with representatives of the credit union sector. We discussed the work of credit unions in their communities, the economic impacts of COVID-19, the role of credit unions in the economic recovery, thematic research being conducted for me by the Credit Union Advisory Committee and various regulatory matters. I updated the representatives on the Government’s response to COVID-19.

I welcome the ongoing work that is taking place to assist members who are impacted by COVID-19. This builds on the government’s call for solidarity and community spirit which is synonymous with credit unions.

Over the past few weeks I have heard many great examples of credit unions delivering real support in innovative ways to their members, particularly vulnerable members, in these difficult times.”

The Minister acknowledged the extensive work that has been ongoing across the credit union sector to ensure continuity of services to their members, despite unprecedented challenges. The Minister would also like to acknowledge the health and safety risks front line staff are facing every day to ensure members continue to receive the support they need.

The Minister committed his support to the collaborative effort from all stakeholders to ensure all necessary steps are taken to continue the provision of important credit union services to members.

Ongoing Stakeholder Engagement

Officials from the Department of Finance chair a weekly conference call with credit union representatives to ensure smooth information flow between the sector and Government.

The Credit Union Advisory Committee (CUAC) is also meeting weekly and has agreed to report to the Minister by 30 June on the implications of COVID-19 on the sector, the role credit unions could play in the economic recovery, challenges and opportunities for the sector, incorporating implications of COVID-19 and any relevant recommendations. CUAC has engaged with the Representative Bodies for their input.

The Registrar of Credit Unions in the Central Bank continues to proactively engage with the credit union sector in responding to COVID-19 and has issued two circulars covering essential service provision and regulatory flexibility measures, which can be found on their website. The Registrar and his team is holding weekly conference calls with credit union representatives to ensure a smooth and up to date information flow between the sector and the regulator. The Registrar and his team also holds a weekly call with officials from the Department of Finance.

ENDS

Notes to Editors

Conference Call Participants

The Irish League of Credit Unions (ILCU), the Credit Union Development Association (CUDA), the Credit Union Managers Association (CUMA) and the National Supervisors Forum (NSF).

The Credit Union Sector

As at 30 September 2019, the credit union sector had a combined membership of c. 3.4 million members across 241 credit unions, total assets of €18.3 billion, loan balances of €5.1 billion and average reserves averaged 16.5%.

Essential Service

The credit union sector is listed as an essential service in S.I. No. 121/2020 of the Health Act 1947 (Section 31A -Temporary Restrictions) (Covid-19) Regulations 2020