Still providing face to face financial services in the local community core business of local credit unions under threat from new central bank restrictions coming down the line
With the announcement that Bank of Ireland has announced a limit on cash withdrawals at counters around the country, Ballaghaderreen Credit Union wants to remind its members that it remains committed to the local Ballaghaderreen community and continues to provide personal, face to face financial service to its members.
The personal service that continues to be provided by Ballaghaderreen Credit Union and indeed all credit unions all over the country continues to be highly valued by the Irish population. Ballaghaderreen Credit Union wants to do much more for their members by expanding their range of services to meet member demand.
The vision of the credit union is to have locally based, accountable credit unions providing a full range of personal financial services to members and all who wish to avail of our services. However, this vision and efforts have been hampered by the announcement that the Minister for Finance intends commencing the outstanding sections of the Credit Union and Co-operation with Overseas regulators Act 2012 on 31 December 2015 giving power to the Central Bank to introduce new regulations for credit unions (CP88)These new powers bring with them new restrictions for how credit unions serve their members by ensuring that appropriate lending is severely restricted, and the financial fundamentals underpinning credit unions are eroded. In many cases, Ballaghaderreen Credit Union believes that they will be forced to send older, vulnerable lifelong savers to the banks because of the restrictions that will be imposed.
In simple terms, these new regulations will ensure that credit unions are restricted from competing effectively with other financial service providers into the future. Ballaghaderreen Credit Union along with credit unions around the country have proven in the personal loan market that they offer exceptional value. Ballaghaderreen Credit Union are now looking to provide more services to their members and their local communities at fair and reasonable rates but instead the draconian rules outlined by the Central Bank that are due to come into play at the end of the year, will restrict credit unions from offering real choice to members.
WHAT is CP88
CP88 “Consultation on Regulations for Credit Unions on commencement of the remaining sections of the 2012 Act” is a consultation paper issued by the Central Bank of Ireland in November 2014 setting out proposals for regulations that will be applied to credit union.
The Credit Union and Cooperation with Overseas Regulators Act, 2012 (the 2012 Act) which amends the Credit Union Act,1997 gives regulation making power to the Central Bank in certain areas for example, savings, lending and reserve requirements. The Central Bank has now issued its feedback statement on this consultation paper and final regulations.