Central Bank aims to stabilise Credit Unions

The Central Bank and Financial Regulator are suggesting measures to stabilise Credit Unions.

The Central Bank has published a paper as part of a series of measures intended to modernise regulation of the institutions.

At present, the Irish League of Credit Unions Savings Protection Scheme provides financial assistance to credit unions in difficulty, but it is not available to all credit unions and the underlying fund is not regulated.

The current SPS fund of approximately €119m represents less than 1% of the total assets of the credit union sector at the end of last year.

The Central Bank is seeking submissions from the public by August 16.