Call For Restructuring Of Credit Unions
The credit union movement should be subjected to a four year restructuring process, the Commission on Credit Unions recommended in a report published Wednesday, the Irish Times reported. A new Restructuring Board should be established to facilitate the process but it would not be the board’s function to “shepherd” individual credit unions that were small or in difficulty, into “an arranged marriage” with other credit unions, commission chairman Prof Donal McKillop told a press conference. An operational team working on the ground would act as a catalyst for the restructuring of the credit union movement, he said. This team would identify strong credit unions that could act as anchors to which other credit unions could become amalgamated, and offer advice and funding on such matters as upgrading processes and systems. The decision to engage in the process would be up to each credit union, he said. Legislation incorporating the main recommendations of the commission is to be published in late June, as agreed with the EU-ECB-IMF troika. The commission has recommended a tiered system with varying levels of regulation depending primarily on an individual credit union’s asset size. Credit unions operating on more sophisticated and larger scales, would have regulatory safeguards to match. Read more.