The Central Bank and Financial Regulator today announced the appointment of Grant Thornton to conduct an independent strategic review of the credit union sector in Ireland.
"The review was requested by the Minister for Finance to assist in the development of a modern credit union sector, identifying the legislative and regulatory framework required to build a strong and sustainable sector," a statement said.
The first phase will concentrate on establishing the financial position and risk profile of the credit union sector.
"In the current challenging economic environment it is important in the interest of members and the sector as a whole that there is a strong and healthy credit union sector," the statement from the Financial Regulator continued.
"Strong leadership will be required to steer credit unions through these uncertain times. If credit unions are to continue to achieve their mandate and develop as viable alternative financial services providers for their members then operational and regulatory change is necessary."
James O’Brien, Registrar of Credit Unions said: "We would encourage credit unions to engage positively with the review. It offers a significant opportunity for all credit unions, large, medium and small, and the sector as a whole to develop a robust and sustainable business model."