Dáil Éireann Debate, Tuesday - 17 February 2026
460. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance in light of the current geopolitical situation and moves at European level for simplification and strengthening the single market, would he support credit unions being allowed access the European Central Bank overnight facility to park excess liquidity or the establishment of a similar domestic equivalent; and if he will make a statement on the matter. [11729/26]
View answerBoth I and the Minister of State with responsibility for credit unions, where necessary and appropriate continue to support the credit union sector to grow and provider services to its members.
Access to the European Central Bank overnight facility is derived from the Governing Council of the ECB - Guideline ECB/2014/60, as amended. In order to be an eligible counterparty for Eurosystem monetary policy operations (including access to the Eurosystem’s deposit facility), an institution must meet the eligibility criteria in the relevant legal act adopted by this Guideline.
The relevant provisions have been implemented in Ireland by the Central Bank's Documentation on Monetary Policy Instruments and Procedures (the 'MPIPs'). An applying institution must therefore satisfy all the eligibility criteria set out in Articles 55 and 55a of the MPIPs. The process of becoming a monetary policy counterparty involves an assessment by the Central Bank as to whether an applicant institution meets these criteria. Any such assessment will be conducted in line with harmonised Eurosystem procedures.
In a previous application by a credit union, The Central Bank determined that the regulatory and supervisory framework for credit unions in Ireland was not comparable to the standards required of the Capital Requirements Regulation/ Capital Requirements Directive ("CRD4"). This distinction has been by design, with credit unions in Ireland benefiting from a bespoke, tailored and proportionate supervisory regime. Accordingly, the Central Bank has determined that the supervisory regime for Irish credit unions does not satisfy the eligibility criterion in Article 55(b)(iii) of the MPIPs, as they do not consider that the Basel III standards have been implemented into the supervisory regime of credit unions in Ireland in a manner that satisfies this criterion.
It is important to note that the Central Bank does not have discretion in respect of the application of the Eurosystem’s monetary policy eligible counterparties framework (which is applied in a uniform manner by the Eurosystem), nor to grant access to Eurosystem monetary policy operations, including access to the Eurosystem’s deposit facility, outside of this framework.
Under the previous Government, the Credit Union Amendment Act (2023) was enacted. The Amendment Act includes provisions permitting the establishment of a Corporate Credit Union. These provisions require development of significant Central Bank regulations.
One potential use of this Corporate Credit Union that is being considered by the sector is a centralised liquidity management entity. I intend to publish a paper, prepared by the Credit Union Advisory Committee (CUAC) which provides useful information on the potential uses and regulatory requirements of a Corporate Credit Union.
