Featured Product

    Central Bank of Ireland Amends Lending Rules for Credit Unions

    November 21, 2019

    The Central Bank of Ireland issued new lending measures for credit unions and these measures will come into effect from January 2020. These measures will allow credit unions to undertake increased longer term lending, including home mortgage and business lending. Further additional capacity is to be extended to larger, stronger credit unions that meet certain requirements.

    The changes in the measures with respect to the proposed measures include removal of the existing lending maturity limits, which cap the percentage of credit union lending that may be outstanding for periods of more than 5 and 10 years. The maturity limits will be replaced by the new concentration limits, on a tiered basis, for home mortgage and business loans, expressed as a percentage of total assets. There are the following three tiers under the changes:

    • A combined concentration limit for house and business loans of 7.5% of total assets for all credit unions
    • A 10% limit, conditional on a credit union satisfying asset size (at least EUR 50 million) and regulatory reserves qualifying criteria and notifying the central bank in advance
    • A 15% limit for credit unions with total assets of at least EUR 100 million, subject to the approval of the central bank

    These changes follow a comprehensive review of the lending framework for credit unions. Following the review, on October 24, 2018, the Central Bank of Ireland had published a consultation on potential changes to the lending framework for credit unions. The consultation had sought views from credit unions and other sector stakeholders on the proposed changes. The Central Bank of Ireland has also published the responses received to this consultation, along with a Feedback Statement.

     

    Related Links

    Keywords: Europe, Ireland, Banking, Credit Unions, Lending Rules, Credit Risk, Regulatory Impact Analysis, Central Bank of Ireland

    Related Articles
    News

    BIS Quarterly Review Discusses Developments in Fintech and ESG Space

    BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.

    September 20, 2021 WebPage Regulatory News
    News

    BCBS to Consult on Supervisory Practices for Climate Risks by Year-End

    The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards

    September 20, 2021 WebPage Regulatory News
    News

    OCC Identifies Operational Risk Deficiencies in MUFG Union Bank

    The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.

    September 20, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    ECB to Consider Climate Risks When Reviewing Collateral Framework

    In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.

    September 17, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    ACPR Publishes Corrective Version of RUBA Taxonomy

    The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7487