The Credit Union Restructuring Board was established under the 2012 Act. The function of the Board includes
- developing provisional proposals and plans for restructuring in the credit union sector,
- assisting credit unions in the preparation of restructuring plans,
- considering and assessing restructuring plans submitted by credit unions,
- approving conditionally or unconditionally or objecting to restructuring plans,
- advising the Central Bank of its recommendations in respect of restructuring,
- making recommendations to the Minister.
It may oversee implementation of restructuring plans for post-restructuring support.
The independence of the Central Bank is not to be affected by the legislation. It retains all of its obligations and functions under EU law in relation to credit unions.
The Board may do anything it considers necessary or expedient to enable it to perform its functions. Additional functions may be conferred on the Board by the Minister. The Board can make requirements directing the form of restructuring plans, including the contents to be included in the plan, as well as other matters relating to the plan, as it considers appropriate.
The Board may require a credit union or a group of credit unions to submit additional information or prepare analysis as the Board deems relevant to enable it to carry out its functions.
Restructuring plans are to include either a plan for transfer or engagement to another credit union or amalgamation of a number of credit unions. The Board must consider plans put forward and reject or approve them with or without conditions.
Guidelines Regulations & Levy
The Board is required to, in consultation with the Central Bank and the Minister, develop guidelines for its operations. These must be approved by the Minister. The Minister may give a direction to the Board in relation to funding to support the achievement of its purposes.
The Board has power to prescribe a regulation allowing payment by credit unions to perform its functions. It has the power to make exemptions, waive or adjust the levy. The value of the levy is, insofar as possible, to be half the expenditure of the Board in performing its functions.
The Board may recover the levy as a simple contract debt. The levy is collected by the Board or by the Central Bank. The Minister may advance moneys to the Board as may be required for the performance of its functions.
The Minister may determine the number of members of the Board. Members are to be appointed by the Minister for such periods as the Minister thinks fit. An employee of the Central Bank, nominated by the government, is to be a non-voting member of the Board.
The Board regulates its own procedures and businesses. It may hold such meetings as are necessary to carry out its functions. It must comply with codes of practice and other documents issued by the Minister in respect of governance of State bodies.
The Board is to report to the Minister unless otherwise directed. It must provide other information as the Minister requires.
The Board is to have a chief executive appointed on the recommendation of the chief executive of the Public Appointment Service. The terms of appointment are to be set with the consent of the department of public expenditure. There is provision for the appointment of staff with the consent of the Minister for public expenditure. The general corporate governance provisions applicable to public sector bodies apply.
Credit Union Fund
The credit union fund is to be self-supporting with restructuring and stabilisation support. The Minister may contribute to the fund from the central fund. The moneys contributed may be repaid by the fund.
The Minister may provide financial support as is required as part of a restructuring plan recommended by the Board from the fund. That is not to be provided unless the Minister is satisfied that the Central Bank has agreed to confirm the transfer of amalgamation concerned or the Bank has approved the stabilisation support.
Account is be kept of the credit union fund. They are to be audited by the controller and auditor general. He must submit his report along with the annual accounts to the Minister, who must then cause them to be laid before the Dail.
The credit union levy is to be levied in accordance with the regulations made by the Minister. He can adjust the rate of contribution. Differential rates may be provided for a different method of calculation by different credit unions or class of credit unions.
The Central Bank may approve the provision of stabilisation and support by the Minister to a credit union which does not meet the minimum reserve requirements, provided that the credit union concerned has reserves of 7.5 percent or higher and is, in the Bank’s opinion, viable. The stabilisation may only be provided during the restructuring process where the Board believes it should be considered.
Before exercising prior to provide support, having received a report recommendation from the Board, the Bank must be satisfied that the deficiency in the regulatory reserve requirement is due to an event that is unlikely to reoccur or is short term in nature. The Bank must take into account a number of factors, including the extent of the credit union’s compliance with regulatory requirements, any actions taken by the credit union to protect its regulatory reserve requirements, and any other matter the Bank considers relevant in the circumstances.
The Bank may approve the provision of stabilisation support on such terms as it considers appropriate. This may include changes in the governance of the business of the credit union or requirements to procure financial or technical advice or a requirement under credit union to meet targets and prepare updates.
The approval of stabilisation support does not constitute a warranty by the Central Bank of the credit union’s solvency. The cost of stabilisation support and other support required as a condition shall be met from the central credit union fund. Monies accrued from the fund, for support provided, will be paid debt to the fund.
The Minister is to establish a credit union stabilisation committee. It is to examine the implementation by the Bank of its own requirements and procedures in relation to powers under the legislation. Conclusions formed as part of the examination are to be forwarded to the Minister and the governor of the Central Bank.
The stabilisation committee is not to affect the independence of the Central Bank in the performance of its functions.