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. The first phase will concentrate on establishing the financial position and risk profile of the credit union sector.
The first phase of the review will include a detailed factual overview and expert assessment of the financial position and risk profile of the credit union sector as whole. Grant Thornton will engage and consult directly with credit unions, carrying out surveys, interviews and on site reviews to collect information to make specific proposals to strengthen the soundness of credit unions. This will also involve assessing the adequacy and appropriateness of:
- External support mechanisms;
- Governance and competency;
- Operating Model; and
- Regulatory and legislative framework for credit unions.
The Central Bank and Financial Regulator has also announced that it intends to hold its inaugural ‘Credit Union Regulatory Forum’ in the autumn. The forum meetings, which will be held on a regional basis, will be an opportunity for credit unions to express views on current issues facing the sector and for credit unions to hear about the Registrar’s regulatory approach. It is intended that the forum will be held annually.
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