DUBLIN, Ireland–Ireland’s regulators have put in place new rules that limit credit union deposits to €100,000 per member.
The Irish Times reported that Finance Minister Michael Noonan has approved the new rules, which will come into force on January 1. The Irish Times, however, said it is understood the rules will be reviewed by a committee that advises the government and will report back within six months.
In the meantime, credit unions and members will be given time to adjust to the new restriction, with some exceptions to be allowed, the Times said. Credit unions will be able to apply for permission to hold on to existing deposits over the limit, while larger credit unions will be allowed to attract new deposits over €100,000.
According to the country’s regulator, the new regulation is designed to ensure that credit union funding is diverse and not reliant on a small number of members.
Ireland’s credit unions put heavy pressure on the government to allow CUs to hold onto any deposits that are over €100,000. The Irish Times further reported that the country’s credit union movement will fight the new plan and will seek to make regulation a general election issue.