The Department of Finance has today proposed that the Credit Institutions Resolution Fund and Credit Union Stabilisation Fund will not be levied for 2026, 2027 and 2028 and will be reviewed in 2029.
A total of €5.3m was collected by the levies in respect of these Funds in 2023.
The Department said that taking into account submissions to the consultation, stakeholder engagement and high-level analysis, the proposal to pause the collection of levies was made on the basis that the net assets of the funds are currently sufficient with ongoing interest accumulating.
The net assets of the Resolution Fund stood at €65.5m by the end of June this year.
Minister for Finance Paschal Donohoe said today’s decision was taken against the backdrop of the current assets of the funds being sufficient for now, the current reserve strength of the sector, and is subject to certain conditions being met.
“Providing the credit union sector with some certainty in relation to the collection of these levies allows the sector to better plan their strategies and manage their finances for the years ahead,” the Minister said.
Minister of State for Credit Unions Robert Troy said today’s announcement will assist in reducing costs for credit unions and will provide additional capacity for the sector to invest in and provide vital services to the communities that they serve.
“Since taking on my role as Minister with responsibility for Credit Unions, I have seen first-hand the work that credit unions undertake to support their communities,” Mr Troy said.
“I am committed to working with the sector to fully realise the potential of the sector as a community-centric financial institution, enhance the ability of the sector to better serve its members, and ensure that the sector leverages any opportunities presented to it in line with the commitments in the Programme for Government,” he said.
“The proposal to pause the collection of levies reflects the increased resilience and the evolution of the credit union sector since the crisis-era when the safety nets of the Resolution Fund and Stabilisation Fund were initially put in place,” he added.
Barry Harrington, Head of Advocacy and Regulatory Engagement at the ILCU, described today’s news as very positive news for the credit union sector.
“At the ILCU, we have actively engaged the Department and relevant stakeholders on both these funds since 2023 and we are delighted that these levies will not be levied for the coming three years. This decision represents a cumulative saving of €8.4m for our sector for 2026, 2027 and 2028, in addition to savings of €2.8m for 2025,” he said.
“Overall, this decision concerning the levy, coupled with the Central Bank lending limit changes and the 2023 Act bring a more proportionate and supportive legislative, regulatory and levies environment,” he added.
The Irish League of Credit Unions (ILCU) represents 90% of the total active credit unions in the Republic of Ireland.
