The Irish League of Credit Unions has held 'constructive and purposeful' talks with the Central Bank on the development of an appropriate strategy to support the credit union movement.
The talks are aimed at addressing the supports needed for credit unions as the country's difficult economic conditions continue and to ensure their continued success in the future.
As part of the IMF/EU bailout deal, the Government made commitments to the future of the credit union movement. These include bringing forward a strategy aimed at enhancing the viability of the sector and submitting legislation to assist credit unions with a strengthened regulatory framework.
The Commission for Credit Unions, which will be set up under the new Programme for Government, will develop a strategic context and make recommendations about the future of the credit unions here.
'In the financial services landscape, credit unions have an even more important role to play in local communities,' commented Mark Bailey, the president of the Irish League of Credit Unions.
'Strong, vibrant and well regulated credit unions can and will serve a significant public need in future years,' he added.
The Central Bank said today's talks are a significant step in the process to establish a statutory resolution regime to place the credit union sector on a stable long term footing to best meet the needs of credit unions and their members.
It said the Irish League of Credit Unions has played a central role in supporting credit unions facing financial difficulties through the use of its savings protection scheme.
'The initiative by the Board of the League to enter into discussions on the establishment of a new resolution framework managed by the Central Bank will greatly enhance the stability of the sector into the future,' commented Finance Minister Michael Noonan.
He said the initiative would help protect the core values of the credit union movement and would enable it to expand services to members seeking a secure place to deposit their savings and a reliable source of credit on fair terms and conditions.
