New Credit Union rules without ‘support or reason’ – Doherty
Sinn Féin Finance Spokesperson Pearse Doherty TD has said much of the new Credit Union regulation from the Central Bank was without “support or reason” and that on critical issues like the savings cap of €100,000 in savings the concerns of the Credit Unions and others had been ignored. Deputy Doherty was responding to the Central Bank’s press release stating that the regulations were now in force.
Deputy Doherty said:
“These long awaited rules, especially the introduction of a €100,000 cap on savings, albeit with some flexibility, represent a move by the Central Bank that is without support and largely without reason.
“When the Registrar was before the Finance Committee recently to discuss these regulations she failed to show how they were reasonable or how they were necessary. It seems when it comes to the Credit Union movement all the normal rules of regulation such as risk weighted regulation are thrown out the window and an ever tightening grip is applied.
“My party firmly believes in strong and robust regulation as does the Credit Union movement itself. On the key issues here though the Central Bank has crossed the line into overly restrictive rules designed to control rather than to ensure stability and the potential for growth.
“I am disappointed that although a reference to investments in social housing appears this is only as a possible future measure. Given the Credit Union movement have presented the Registrar with their plans in this regard I would hope this could become a reality sooner rather than later.
“Overall, these new regulations will confirm the fear of the Credit Union movement that the Central Bank backed by government are not serious about promoting the work and ethos of the Credit Union movement. The regulations are lacking evidence as to why they are appropriate and are lacking public and stakeholder support which is hardly surprising given that the consultation process seems to have largely been window dressing.”