Credit unions will be able to take part in loan syndications and to refer customers on to other credit unions for specific services under new legislation which has been proposed by Minister for Finance Michael McGrath.
At the weekly meeting of Cabinet Ministers, Mr McGrath received approval for the drafting of new provisions in the Credit Union (Amendment) Bill 2022.
The first provision would allow for credit unions to take part in loan syndication, where multiple lenders come together to fund one loan for a single borrower.
Until now, a credit union has not been allowed to become a member of a syndicate of financial institutions involved in funding a particular loan.
The second new power would give credit unions powers to refer members to another credit union in situations if it could not provide the service that the customer was requesting.
In a memo to his Minister colleagues, Mr McGrath said that both of the proposed changes to the Bill were the result of feedback from credit union representative groups after the publication of the original Bill.
They were highlighted by Mr McGrath during second stage in the Dáil. They will now be moved at the committee/report stage in the Dáil.
The substantive Bill provides for the establishment of corporate credit unions, which will give the greater scope for investment and also to offer a greater range of services, including more substantial mortgage offerings.