The Minister for Finance has signed an order that will bring new legislation on credit unions into effect.

The proposals are aimed at giving credit unions more flexibility to expand their membership and services.

Minister Michael McGrath yesterday (21 February) signed an order to commence phase one and phase two of the Credit Union Amendment Act 2023.

The signing took place at an event in the Department of Finance, attended by all four credit-union representative bodies (ILCU, CUDA, CUMA, and NSF), members of the Credit Union Advisory Committee, the Registrar of Credit Unions in the Central Bank, and department officials.

Collaboration

The first phase of the act comes into effect today (22 February), while the second phase begins operating on Monday 8 April.

Among the main features of the legislation are:

• Options for credit unions to collaborate, share resources, and generate economies of scale, enabling them to compete more effectively in the mortgage and SME-lending markets,
• Credit unions can refer members to another credit union with a wider product offering, while the act will also allow the formation of corporate credit unions,
• Increased flexibility on the common bond, opening opportunities to expand membership and services, and
• Credit union boards will be given more powers to better manage their own governance, and to allow each board to focus and concentrate on strategy and development.

Minister McGrath described the legislation as “a great opportunity for credit unions to expand, grow, and develop”.

Jennifer Carroll MacNeill (Minister of State for financial services, credit unions and insurance) said that the act provided credit unions with “a hugely important opportunity” to solidify their position in the State’s financial-services system.