Central Bank begins talks with credit unions over bad debt categorisation
THE Central Bank said has begun consultation with credit union leaders about the best way to categorise bad debts.
The regulator has published a consultation paper and will then draw up suggestions to measure the levels of bad debts in the sector and individual credit unions.
“We look forward to studying the paper with our member Credit Unions,” said Credit Union Development Association boss Kevin Johnson. “We believe that a proper tiered regulatory structure will facilitate the next growth phase of progressive Credit Unions in Ireland learning from the successful models in jurisdictions such as USA and Canada.” Mr Johnson said his organisation will be pushing for new rules to replace the “out-dated” one size fits all approach that was designed for a different era.
“We hope that this consultation will be consumer focused and will lead to enhanced services and product being offered to the members of the more developed credit unions,” he added.