- Consultation on credit union investment rules published
- Changes could facilitate investment in areas such as social housing
- Views sought from stakeholders
The Central Bank has
today published a consultation paper on the investment framework for credit
unions. Under existing regulations, credit unions can invest in a range of
specified investment classes. These include government securities, bank
deposits, bank bonds and collective investment schemes made up of these
instruments. These are subject to specified maturity and concentration limits.
To ensure the
investment regulations remain
appropriate for the sector,
Bank undertook to review the investment regulations in 2017. The purpose of
this review was to consider the appropriateness and prudence of expanding the
range of investment classes available to credit unions.
Following this review, the Central Bank is now consulting on
potential changes to the framework. These changes could facilitate investment
in additional types of bonds and in social housing. They could also introduce
changes to the existing counterparty concentration limit for credit unions.
consultation paper seeks views from credit unions and other sector stakeholders
on the potential changes outlined, together with feedback as to whether there
are additional investment classes appropriate for credit unions, taking account
of the appropriate risk profile for such investments.
The consultation will
be open until 28 June 2017. Original Article Here