Credit unions review welcomed

[TotalMayhem]

The appointment of independent consultants to carry out a review of the credit union sector in Ireland has been welcomed by the Irish League of Credit Unions.

Chief executive of the Irish League of Credit Unions, Kieron Brennan, said he sees the review as an opportunity to strengthen the credit union movement, and allow it to take a more influential position in Irish society.

Full story here.

gotta love the independent consultants, probably looking whether there's any capital left for the government to raise.

[concernedparent]

Probably wont even raise capital, just see how much they can legally redirect

[Captain Con O'Sullivan]

We had a thread on here some weeks back the title of which i cannot recall but I well remember the representative of the Credit Union Association back in May/June telling an Oireachtas committee that sure the Credit Unions were fine and that they had reserves and a system which was sound.

So now we hear there is going to be an independent review ... something isn't right.

[TotalMayhem]

just see how much they can legally redirect

i like the way you put it. it doesn't even remotely imply daylight robbery.

[ang]

We had a thread on here some weeks back the title of which i cannot recall but I well remember the representative of the Credit Union Association back in May/June telling an Oireachtas committee that sure the Credit Unions were fine and that they had reserves and a system which was sound.

So now we hear there is going to be an independent review ... something isn't right.

Hi Captain,

That thread including your post with link to the committee debate is here:-

http://www.politicalworld.org/showth...e+credit+union

[Captain Con O'Sullivan]

cheers ang- that was good of you ...

[Captain Con O'Sullivan]

Here's the relevant Oireachtas committee meeting record from 27th May, just two months ago detailing how everything with the Credit Union system was fine...

http://debates.oireachtas.ie/DDebate...xml&Node=H2#H2

[Captain Con O'Sullivan]

Here is an extract to save people trawling along that annoying system they have for recording minutes on the oireachtas online record;

Extract: James O'Brien is the Credit Union Registrar.

Mr. James O’Brien: Credit unions are important and we believe the credit union movement will become even more important in the near future because of the shape of the financial sector. However, we should not be complacent. The credit union sector has done reasonably well but we need to be able to look forward and to take preventative measures where we see a risk. This is a preventative measure. We are not saying there are significant problems at present; we are looking a year to 18 months ahead.

Deputy Kieran O’Donnell: The strategic review could be completed within that timeframe.

Mr. James O’Brien: If the strategic review is completed in 18 months, it might be too late. We are now looking at a period where the stresses are increasing dramatically. We want to put a preventative measure in place where we help members while protecting the credit unions and the savers.

Deputy Kieran O’Donnell: How many credit unions are meeting the 10% capital ratio?

Mr. James O’Brien: We set a benchmark of 10% but we have also provided transitional arrangements for credit unions of 7.5%. The majority of credit unions are now meeting that 7.5%. A significant number of credit unions is also meeting the 10%.

Deputy Kieran O’Donnell: What would that figure be?

Mr. James O’Brien: About 84% of those meeting the 7.5%.

Deputy Kieran O’Donnell: That is 84% numerically speaking?

Mr. James O’Brien: Yes. They have total reserves of more than 10% of their assets.

Deputy Kieran O’Donnell: The assets are around €14 billion. What percentage of the top 100 credit unions are making 10%?

Mr. James O’Brien: We do not have figures for the top 100 credit unions.

Deputy Kieran O’Donnell: It would be reasonable to say that the credit union movement is unlike the banking sector. It is in a reasonably sound financial state.

Mr. James O’Brien: I said at the outset that if one looks at the sector overall, it is in shape but we do not want to be complacent.

Deputy Kieran O’Donnell: I accept that.

[TotalMayhem]

an opportunity to strengthen the credit union movement, and allow it to take a more influential position in Irish society.

Not sure if I like the sound of this. One would think, the Irish society is sick of financial institutions in influential positions.

[BrendanGalway]

Here is an extract to save people trawling along that annoying system they have for recording minutes on the oireachtas online record;

Thats Horrible reading. We have seen a similar style to this a few times now on this site. The same question is asked repeatedly and the guy on the other end fudges his answers. And it of course emerges that none of his fluff stood up to scrutiny.

If only we cared....

[TotalMayhem]

A very desperate man at the Galway Races:

[concernedparent]

Here is an extract to save people trawling along that annoying system they have for recording minutes on the oireachtas online record;

Extract: James O'Brien is the Credit Union Registrar.

Mr. James O’Brien: Credit unions are important and we believe the credit union movement will become even more important in the near future because of the shape of the financial sector. However, we should not be complacent. The credit union sector has done reasonably well but we need to be able to look forward and to take preventative measures where we see a risk. This is a preventative measure. We are not saying there are significant problems at present; we are looking a year to 18 months ahead.

Deputy Kieran O’Donnell: The strategic review could be completed within that timeframe.

Mr. James O’Brien: If the strategic review is completed in 18 months, it might be too late. We are now looking at a period where the stresses are increasing dramatically. We want to put a preventative measure in place where we help members while protecting the credit unions and the savers.

Deputy Kieran O’Donnell: How many credit unions are meeting the 10% capital ratio?

Mr. James O’Brien: We set a benchmark of 10% but we have also provided transitional arrangements for credit unions of 7.5%. The majority of credit unions are now meeting that 7.5%. A significant number of credit unions is also meeting the 10%.

Deputy Kieran O’Donnell: What would that figure be?

Mr. James O’Brien: About 84% of those meeting the 7.5%.

Deputy Kieran O’Donnell: That is 84% numerically speaking?

Mr. James O’Brien: Yes. They have total reserves of more than 10% of their assets.

Deputy Kieran O’Donnell: The assets are around €14 billion. What percentage of the top 100 credit unions are making 10%?

Mr. James O’Brien: We do not have figures for the top 100 credit unions.

Deputy Kieran O’Donnell: It would be reasonable to say that the credit union movement is unlike the banking sector. It is in a reasonably sound financial state.

Mr. James O’Brien: I said at the outset that if one looks at the sector overall, it is in shape but we do not want to be complacent.

Deputy Kieran O’Donnell: I accept that.

What does 84% numerically speaking mean?

I thought 84% was a percentage of another number?

its a while since I graced the corridors of education, but have things changed that much.

[Captain Con O'Sullivan]

Deputy Kieran O’Donnell: How many credit unions are meeting the 10% capital ratio?

Mr. James O’Brien: We set a benchmark of 10% but we have also provided transitional arrangements for credit unions of 7.5%. The majority of credit unions are now meeting that 7.5%. A significant number of credit unions is also meeting the 10%.

I think its worth highlighting that exchange in particular. if I'm reading it right the Deputy is asking how many of the credit unions are meeting the regulatory 10% of capital (presumably to loan book ratio?) requirement.

The answer is extremely evasive- seems to me to say 'weve revised the ratio downwards to 7.5% and called it a 'transition rate' which says to me that they've moved the goalposts rather than ensure compliance.

The other non-accountancy magic words in there are 'majority' and 'significant'. These answers should be noted for their attempt at Jesuitry.

[ang]

Tom Appleby is a little concerned about Credit Unions:-

The issue of directors' loans at credit unions, believed to be widespread in some parts of the country, has the potential to cause major conflicts of interest, the corporate watchdog Paul Appleby has said.

http://www.independent.ie/business/i...k-2278305.html

[TotalMayhem]

The issue of directors' loans

this sounds vaguely familiar.