DUBLIN, Ireland–Credit unions in this country will be able to take part in larger loan syndications and the creation of corporate credit unions would be permitted under proposed new legislation.
The proposal would also allow credit unions to refer members on to another provider for specific services.
At the weekly meeting of cabinet ministers, Minister of Finance Michael McGrath received approval for the drafting of new provisions in the Credit Union (Amendment) Bill 2022, the Independent reported.
“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,” the Independent stated. “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.”
A Second Power
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 member was requesting, the Independent added.
In a memo to his Minister colleague cited by the Times, 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.
Establishment of Corporates
In addition, 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,” the Independent reported.
Just Because It’s Autumn Doesn’t Mean Falling for Schemes to Overcharge You for CU Industry News. Instead, Try This Crisp Offer
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?