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

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582