NEW CREDIT UNION REGULATIONS
A whole new sweeping set of regulations are due to hit the Credit Union Sector this year covering areas such as reserves, liquidity lending, investments, controls and reporting requirements. It is proposed under the new rules that the maximum amount that anybody can save with their Credit Union will be limited to €100,000 which is half the level currently in place. It is also proposed that Credit Unions be given six months to bring any savings that do not meet the terms and new regulation in to compliance.
In respect of borrowing, Credit Unions will be restricted to borrowing up to 25% of their aggregate savings which will be half the level that currently exists. The Credit Unions are currently required to maintain a regulatory reserve ratio of at least 10% annually. It is proposed to retain this in the draft regulations along with a proposal that newly registered Credit Unions maintain enough reserves to support the Credit Unions anticipated growth and to allow to upgrading losses.
Credit Union Department