Cormac Devlin
Question:65. Deputy Cormac Devlin asked the Tánaiste and Minister for Finance the way in which he is working to enhance the credit union sector; and if he will make a statement on the matter. [48368/26]
View answerThursday, 25 June 2026
Questions (65)
Written answers
The Government is committed to supporting the continued development and expansion of the credit union sector, recognising its important role in providing community-based financial services.
A range of legislative and regulatory measures have already been delivered, and the focus now is on the development of a five-year strategy for the credit union sector.
On 19 April, Minister of State Troy formally announced the commencement of the Credit Union Strategy Project. The Strategy Project, a Programme for Government commitment, will for the first time deliver a sector-wide approach to futureproof the credit union movement and allow the sector to address challenges and capitalise on emerging opportunities.
This strategy will build on the foundations of the Credit Union (Amendment) Act and the Central Bank’s lending reforms and will focus on establishing a shared vision and clear strategic direction for the sector, primarily within the existing legislative and regulatory framework.
The Project Governance Board has approved documents setting out the Terms of Reference, governance arrangements and scope of the project. A sector-wide survey, designed to inform strategic priorities, and an application process for participation in the Strategy Committee and associated workshops are at an advanced stage and are expected to launch in early July.
The Credit Union (Amendment) Act 2023 introduced significant reforms aimed at strengthening and modernising the sector and broadening the range of services available to members. Key measures include loan referrals, loan participation, and provisions relating to the establishment of a Corporate Credit Union.
Amended lending regulations, which commenced on 30 September 2025, significantly enhanced the lending capacity of credit unions. The regulations increased the lending limits to 30% of total assets for mortgages and 15% for business loans, thereby enabling credit unions to expand their offerings and compete more effectively in these markets. Based on sector assets of €23 billion at end-March 2026, these changes permit up to €6.9 billion in mortgage lending, and up to €3.5 billion in business lending.
The amendment of these regulations reflects the competence and capability of credit unions to grow their respective loan books in a prudent manner, and to futureproof their offering to support homeowners and businesses. I welcome the amended regulations and thank the Central Bank of Ireland for their work, and support to the sector by amending these regulations. These regulations will allow credit unions to compete more effectively in the mortgage and business lending market.
Credit unions will come within the scope of the Digital Operational Resilience Act from 17 January 2028. While this presents challenges, including potential costs, it is essential to protect members funds and ensure the sector’s resilience in an increasingly digital financial environment. My Department is monitoring progress through the Credit Union Stakeholder Roundtable Forum.
To support financial planning and stability within the sector, regulations were signed last October to set a nil levy for the Credit Union Resolution and Stabilisation Funds following a detailed public consultation. This effectively pauses levy collections until October 2029, subject to certain conditions prevailing.
These measures taken together, demonstrate the Government’s continued commitment to modernising, improving, and enhancing the Credit Union sector in Ireland, and I look forward to seeing the results of these significant changes in the years ahead.