European Commission approves extension of credit union scheme

A scheme to provide for the orderly wind-up of Irish credit unions has been extended until the end of the year, after the European Commission approved the move.

Originally introduced in December 2011, the Irish credit resolution scheme has been prolonged several times, with the last extension in January expiring at the end of last month. It enables the Central Bank to proceed “with swift resolution action where such an intervention is required”, and safeguards financial stability and protect the interests of depositors when a credit union is unable to meet regulatory requirements.

The Commission said the scheme met state aid rules, and the measures are “well targeted, proportionate and limited in time and scope”.