The Government has halved the levy that credit unions must pay into a fund set up to deal with any financial difficulties in the sector.
The Department of Finance said that the rate for the Credit Institution Resolution Levy in 2024 would be set at 0.012007% of assets – a reduction from 0.024725% in 2023.
This will increase the size of the resolution fund by €2.5 million a year.
Jennifer Carroll MacNeill (Minister of State responsible for credit unions) said that the reduction had been made on the basis that “a substantial review” of both the levy, and a separate stabilisation levy, would be carried out next year.
She added that the resolution fund remained on course to meet a target of €65 million by 2025.
The fund was set up in the wake of the financial crisis under the Central Bank and Credit Institutions (Resolution) Act 2011.