In the course of the review the Central Bank found a number of credit unions had sound standards and good practices, were prudently managing risks, and had embedded sound risk management and compliance practices. These credit unions could become models for the wider sector to follow.
However the review found a number of issues in credit unions which require improvement. Since commencing risk-based supervision of credit unions in May 2012, the Central Bank has completed on-site risk assessment engagements with almost 200 credit unions representing approximately three quarters of the sectors total assets and savings. These credit unions have been issued with risk mitigation programmes requiring them to address the issues.
Governance, credit, operational and strategy/business model risk accounted for eight out of ten of the material risks issues needing remediation with weaknesses in governance and credit highlighted as areas requiring improvement.