Preasráitis
Consultation on proposed changes to the Credit Union Lending Regulations
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
Earlier this week (11 December) the Central Bank of Ireland published a review of the regulatory framework for credit union lending, and launched a public consultation on proposed changes to the framework.
Following their evidence based review, and having regard to recent developments and other factors and considerations, it is the Central Bank’s view that changes to the lending regulations are warranted at this time. In this regard, the Central Bank is proposing a number of targeted changes to the lending regulations in the following areas:
1. Concentration limits for house and business lending; and
2. Lending practices for specific categories of lending.
Further detail on the proposed changes to the credit union lending regulations and the matters considered by the Central Bank in bringing forward the proposals (as well as a Regulatory Impact Analysis (RIA) on the proposals) is contained in a consultation paper also published on the Central Bank website today - CP159 – Consultation on Proposed Changes to the Credit Union Lending Regulations.
The consultation paper seeks views from credit unions and other stakeholders on the proposed changes. The closing date for receipt of submissions on CP159 is 11 February 2025 - submissions should be sent to rcuconsultation@centralbank.ie and include the subject heading “Consultation on Proposed Changes to the Credit Union Lending Regulations”.
The Minister for Finance Jack Chambers welcomed the consultation saying:
“I welcome the review of the regulatory framework for credit union lending and thank the Central Bank for their work on this. I agree with the Central Bank that changes to the lending regulations are warranted.
"The proposed amendments to the framework would provide a guardrail for those credit unions who want to increase their level of house and business lending, allowing these credit unions the opportunity to provide credit for their members in a sustainable manner.
"I would encourage credit unions and other stakeholders to make their submission on the proposed changes to the Central Bank by 11 February 2025.”
The Minister for Financial Services, Credit Unions and Insurance, Neale Richmond, said:
“I am delighted by the proposed changes to the credit union lending limits. In my visits to credit unions in every corner of the country, the main issue raised with me is the need for change to the lending limits. I would like to thank the Central Bank for their engagement with me and the sector on the lending limits and I welcome their comprehensive review of the regulatory framework for credit union lending.
“These changes will benefit credit unions across the country, allowing them to increase both their house and business lending if they wish to do so. I am particularly glad to see the removal of the requirement to present a business plan for business loans of over €25,000, an issue which has been raised with me consistently in my visits to credit unions.
“Credit Unions are at the heart of communities right across Ireland, supporting both individuals and businesses. Along with the continued implementation of the Credit Union (Amendment) Act 2023, these proposed changes will provide credit unions with the opportunity to grow and continue to provide for their members.
“I would strongly urge credit unions and other stakeholders to engage with the Central Bank on this consultation before 11 February 2025, to ensure they have their say on the future of the sector.”
- house lending - 30% of total assets
- business lending - 10% of total assets
These changes would result in significant overall capacity for house and business lending (€8.6 billion capacity compared to the €2.9 billion available under the current concentration limits).