Central Bank welcomes outcome of Peer Review by the International Credit Union Regulators’ Network

The Central Bank of Ireland has today (28 May 2024) published a peer review undertaken by the International Credit Union Regulators’ Network (ICURN).

The publication - Peer Review: Central Bank of Ireland’s Performance of its Regulatory Functions in Relation to Credit Unions – assessed the Central Bank’s compliance with ICURN’s Guiding Principles for Effective Supervision of Financial Cooperative Institutions and Enhancing Governance of Cooperative Financial Institutions.

The review found the Central Bank remains effective in performing its functions in the regulation and supervision of the credit union sector. The publication highlighted important improvements since the last review in 2019, and also set out recommendations to further improve supervisory effectiveness and achieve full compliance with the ICURN Guiding Principles. The review was undertaken in 2023 by an international team of ICURN regulators drawn from the US, the UK and South Africa. The review provides an assessment of Ireland’s legislative, regulatory and supervisory framework for credit unions.

Welcoming the outcome of the review, Registrar of Credit Unions, Elaine Byrne said: “Aligned with the Central Bank’s strategic themes of transforming, safeguarding and being open and engaged, the peer review provides external scrutiny on the performance of our functions in relation to the regulation and supervision of credit unions. This review forms part of good governance to ensure we continue to be an effective and proportionate regulator.

“I welcome that the peer review found the Central Bank remains effective in performing its functions in relation to the regulation and supervision of credit unions, recognising the improvements we have made since 2019. I also acknowledge and welcome the recommendations for further enhancements. We will consider the findings and recommendations in the review with a view to enhancing our current practices in the context of our mandate, vision and strategy for the sector and aligned with our supervisory frameworks and risk appetite. Our approach will also be informed by the broader macroeconomic environment conditions and the potential for these to impact on individual credit unions and the credit union sector more generally. The Central Bank is committed to ensuring the protection by each credit union of the funds of its members and maintaining the financial stability and well-being of credit unions generally.”

Notes

• The Central Bank is required under Section 32M of the Central Bank Act of 1942 to have an independent review of the performance of its regulatory functions undertaken at least every four years. The last peer review in relation to credit unions was carried out in 2019.
• ICURN is an independent international network of credit union regulators formed in 2007, with members drawn from over 40 countries and jurisdictions, including Ireland, other European countries, USA, Canada, Africa and Australia.
• The Review assessed the Central Bank’s compliance with ICURN’s Guiding Principles for Effective Supervision of Financial Cooperative Institutions and Enhancing Governance of Financial Cooperative Institutions. The Guiding Principles take into account the unique nature of financial cooperatives, and using the Basel Committee's Core Principles for Effective Banking Supervision as a guide, provide guiding principles conducive to developing an effective supervisory system for financial cooperatives.