The president of the Irish League of Credit Unions has called for an independent credit union regulator to be set up. Mark Bailey was speaking to the Joint Oireachtas Committee on Economic Regulatory Affairs.
Mr Bailey also said the Minister for Finance has indicated his intention to increase the amount of the credit union loan book that may be out on loan over a five-year period.
Under current rules, not more than 20% of the loan book can be out on loan for over half a decade. That is now to be increased to 30% of the loan book. The extension will allow people the flexibility to reschedule their loans, and gives the credit union the scope to facilitate this.
Mr Bailey said credit unions had serious concerns about the new regulatory structures which were being proposed to deal with the banking crisis. Mr Bailey said credit unions were concerned that these would take a 'one size fits all' approach, and that the regulation of credit unions would be excessive and disproportionate.
He said the system of regulating credit unions had so far worked effectively, despite some concerns that the approach taken by the Registrar of Credit Unions had been 'over-zealous'. The Registry of Credit Unions currently operates within the Financial Regulator.
'Despite an extremely tough climate last year, with major challenges for individual credit unions and their members, credit unions remain robust, stable and prudentially sound,' Mr Bailey told the committee.
