Dáil Éireann Debate, Thursday - 18 December 2025
256. Deputy Ryan O'Meara asked the Tánaiste and Minister for Finance his priorities for the credit union sector in 2026; the key initiatives taken to support the sector during 2025; and if he will make a statement on the matter. [72578/25]
Amharc ar fhreagra373. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance the key measures taken to support the credit union sector during 2025; his priorities for 2026; and if he will make a statement on the matter. [73582/25]
Amharc ar fhreagraI propose to take Questions Nos. 256 and 373 together.
One of key priorities for credit unions in 2026 is the Programme for Government commitment, to draft a five-year strategy for the sector. Both I and the Minister of State with responsibility for credit unions intend to co-sponsor with the credit union sector a plan to determine the sector's strategy. Agreement on a sector strategy and a focused deployment of credit union resources will support the expansion of financial services to all credit union members.
I expect that in early 2026, both I and the Minister of State will have the opportunity to approve and launch the work plan to deliver this strategy, in conjunction with the sector.
My officials, together with credit union stakeholders worked collaboratively to deliver the Credit Union (Amendment) Act 2023. The Act represents a very significant piece of legislation that will have far reaching positive implications for the credit union sector in the years to come.
The majority of provisions of the 2023 Act have commenced and progress is being monitored and reported to me by the Credit Union Advisory Committee (CUAC). Provisions yet to be commenced are in relation to Credit Union Service Organisations (CUSOs) and a corporate credit union. It is intended that the Central Bank of Ireland will publish a consultation paper during H1 2026 which will set out their proposals for the regulatory framework for investment by credit unions in CUSOs.
A statutory consultation will then be undertaken, as required under section 84A of the Credit Union Act, 1997 on draft amending regulations which will give effect to the regulatory framework for investment by credit unions in CUSOs.
In August 2025, the previous Minister for Finance and the Minister of State published recommendations on the Credit Union Resolution and Stabilisation Funds (the Funds). This followed a review and public consultation on the future use and structure of the Funds for the credit union sector.
Following the recommendations and statutory consultations, the levy rate for Funds has been set at 0% until October 2029, subject to certain conditions prevailing. This represents a considerable reduction from the €5.3 million that was collected by levy in respect of these Funds in 2023.
One very important Programme for Government commitment was to engage with the Central Bank of Ireland to review credit union lending limits. I am pleased to confirm that this work has been completed and revised lending limits are now in place.
Amending regulations commenced on 30 September 2025, permitting the sector to advance up to €6.75 billion in house lending and €3.375 billion in business lending, based on sector total assets of €22.5 billion as at 30 September 2025. This is a significant increase from previous permitted lending limits of €2.9 billion at 30 June 2024.
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 as it will allow credit unions to compete more effectively in the mortgage and business lending market.
