Robust regulation call for credit union sector

WEAK credit unions will be exposed in the recession and the sector needs a strong and robust regulatory framework for long term sustainability, the Registrar for Credit Unions James O’Brien said last night.

Addressing the inaugural Credit Union Regulatory Forum in Cork, Mr O’Brien said: “The future sustainability of your credit union and the overall credit union sector depends on that trust. If credit unions are to remain sustainable in the long term, then it is vital that a strong and robust regulatory framework is established to ensure the protection of members’ savings and the financial stability of individual credit unions and the sector overall.”

However, Mr O’Brien said he expects the downturn will continue to expose credit unions that do not have the financial strength to weather difficulties. “Part of our regulatory work will be concentrating on identifying weak, or non-viable, credit unions and taking preemptive actions where necessary in order to sustain the financial strength and well being of the sector,” he said.