Levies on credit unions to end in 2026
The Government is to pause the collection of two separate levies from credit unions, in line with the recommendations of reviews of the two schemes published today (27 August).
The papers propose that the levy rates for the Credit Institutions Resolution Fund and Credit Union Stabilisation Fund be set at 0% for 2026 and beyond, subject to the completion of statutory consultation and certain conditions.
Credit unions paid a total of €5.3 million into the two funds in 2023.
The proposal to pause the collection of levies was made on the basis that the net assets of the funds were currently sufficient, with ongoing interest accumulating.
‘Certainty’
The resolution fund, set up in 2011 in the wake of the financial crisis, is designed to deal with any financial difficulties in the sector, while the stabilisation fund provides financial support to struggling credit unions.
“Providing the credit-union sector with some certainty in relation to the collection of these levies allows the sector to better plan their strategies and manage their finances for the years ahead,” said Minister for Finance Paschal Donohoe.
Minister of State with responsibility for the sector Robert Troy said that the move would help to reducing costs for credit unions and provide them with additional capacity to invest in and provide services to the communities that they served.
Earlier this month, the Central Bank introduced changes to the regulatory lending framework for credit unions to provide them with greater scope to increase lending to businesses and households.