Irish Credit Unions

Prof. Donal McKillop (Queen's University Belfast), an international expert on credit unions, is currently chairing the Irish Commission on Credit Unions.  The Commission's interim report was released on Friday past.   

The total arrears of Irish credit unions stand at about €1 billion, and 27 of Ireland's 408 credit unions are seriously undercapitalised.  The following are some of the main recommendations made by the Commission: 

1) Set up a “stabilisation fund”, financed by credit unions, to stabilise viable institutions.
2) The Central Bank should have “resolution” powers to foreclose credit unions.
3) Credit union are to appoint a risk management and compliance officer as well as develop an internal audit function.
4) Some form of prudential regulation should be introduced.

The final report of the Commission is released in March.

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