New legislation will allow credit unions to expand their membership and services across the Midlands-North West, a Fine Gael MEP has said.
MEP Maria Walsh was speaking following the official commencement of the Credit Union Amendment Act 2023, new legislation aimed at bringing about significant reforms for the Credit Union sector in Ireland.
“Credit Unions are central to life in towns and villages in the Midlands-North West and across Ireland, with approximately 3.6 million members throughout the country,” MEP Walsh said.
“Owing to the huge body of work which has taken place over the past three years on this legislation, much needed reforms will enable a wider availability of products across credit unions and enable members to access the widest possible range of financial services through their local branch.
“The practical benefits for the sector include:
- Extended collaboration options for credit unions to enhance competitiveness in lending markets.
- Increased member choice with options like referral to other credit unions or forming corporate credit unions.
- Flexibility around the common bond for expended membership and services.
- Empowered credit union boards for better governance and strategic focus.
“The commencement of the Act will be phased with Phase 1 coming into effect today, Thursday 22nd February 2024, while the commencement of Phase 2 will come into effect on Monday 8th April 2024.
“Fine Gael is committed to ensuring more people own their own homes. It is expected that through the enhanced ability to collaborate, share resources and generate economies of scale that this legislation affords, credit unions will be able to compete more effectively in the mortgage and SME lending market.
“This Act represents a very significant piece of legislation that will have far-reaching positive implications for communities across Midlands-North West in the years to come.” MEP Walsh concluded.
