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7TH DECEMBER 2015 TEL: 01 451 3822 / 01 451 9000 email: info@newsgroup.ie web: www.newsgroup.ie
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Minister set to sign new regulations in to law before Christmas
Fianna Fáil Senator Darragh O’Brien has described the Dáil debate on the future of credit unions as a last chance to ensure that the sector can operate on a level playing pitch against the interests of the big banks. Senator O’Brien commented “As banks close branches and restrict in-branch services, credit unions provide important competition and choice to consumers. In many
parts of the country they are now the only local provider of financial services. However, credit unions are now about to be hit by a wave of new restrictions on their activities before the end of the year.
The most serious of these is the impending €100,000 limit on savings. This is an unnecessary limitation on customer choice. It will send out the signal that credit unions are
less safe than financial competitor institutions.
Fianna Fáil has put down this motion to give the Dáil the opportunity to force the Minister for Finance to press the pause button on these new regulations which threaten the ability of credit unions to compete with the banks. It is our view that a working group involving representatives of the
industry should be initiated immediately to examine the appropriateness of the regulatory structure. No further red tape should be imposed on credit unions until such time as this happens
These regulatory measures were conceived at a time when the Government was convinced that significant funds would be required to support and resolve the sector. However a prediction by Minister Noonan that there would be a cost of up to €1 billion to support the credit union sector has proven entirely inaccurate. The measures can no
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