Credit Unions to be greatly strengthened by new legislation – Byrne

The role and services offered by credit unions in our communities will be strengthened by new legislation, Fine Gael Senator Maria Byrne has said.

The Limerick Senator has welcomed Government’s decision to publish the Credit Union (Amendment) Bill which, she says, is crucial for the future development of the Credit Union sector.

Senator Byrne, who is on the finance committee, said as it currently stands each credit union is a separate legal entity with its own board and management team. The proposals under the new bill represent a major change to how credit unions currently operate in terms of the common bond and the option to launch corporate credit unions.

“Credit unions cannot share business currently. New legislation, being brought by the Finance Minister Paschal Donohoe, will support collaborative efforts among credit unions, benefiting members through the widening of the range of products and services available.” Senator Byrne said.

“This is turn will benefit the communities and people they serve. Credit Unions play a proud role across our country and their future prosperity must be ensured. With two banks leaving the Irish market, the function of credit unions has become even more important.”

Cabinet this week approved publication of the Credit Union (Amendment) Bill 2022 which meets a Programme for Government commitment to review the policy framework for credit unions.

The Fine Gael Senator said there has been extensive engagement with stakeholders prior to this.

Senator Byrne ultimately said the Credit Union (Amendment) Bill 2022, the first legislative changes in ten years, will allow credit unions nationwide make a greater financial, social and environmental contribution.

“Members, who are the strength of our credit unions, will ultimately be the main beneficiaries. That has to be welcomed,” she added.