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Central Bank must change their attitude to Credit Union movement following CUAC report – Doherty

6 July, 2016 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has said it is time for the Central Bank to change its attitude towards the Credit Union movement following the release if the Credit Union Advisory Commission’s report on the sector.

Deputy Doherty said:

“I welcome the release of this report today. I believe the overarching sentiment in the report is that despite the turmoil of the last decade the Credit Union has survived, maintained its reputation and is now ready to play its role in the economy of the future. 

“It is no small feat that given what has happened to our banking sector that the Commission can report that: ‘The level of provisions, liquidity and capital suggest that most credit unions are well positioned to withstand shocks to their balance sheets’.

“The report is clear too that the Central Bank needs to change its attitude towards the movement pointing out that key proposals from the Commission on Credit Union’s report in 2012 on Section 35 lending and the introduction of tiered regulation have still not been implemented. I agree with this report’s finding that ‘the onus is on the Central Bank to recognise the full spirit of the recommendations of the Commission on Credit Unions and to adopt a more permissive attitude to the development plans of credit unions’.

“There are some concerns raised in this report that must be taken seriously, but overall, I believe it points to a Credit Union sector that has worked tirelessly to change some of its ways and has managed to jump through every hoop put before it and  come out the other side in strong shape. 

“Now is the time for a change of attitude from the Central Bank and from government towards the Credit Union movement. They need to adopt an attitude that seeks to empower the movement not to stifle it. Strong regulation is wanted by all players in the industry and by members. This report maps out how this can be done if the Central Bank adopts a more positive attitude.” 

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