The recommendations of the commission on credit unions are bang in line with the powers the central bank is being granted in any event to sort out non-viable and viable credit unions. The commission is simply agreeing with what is already happening. According to its authors there are 27 unions severely undercapitalised and another thirty or so undercapitalised. The media missed the important rider to this data – these numbers will grow by year end as credit unions factor in loan and investment losses and another year of declining return on assets. The report does not provide any info on the banks credit union PCAR test or findings of the Grant Thornton review save to say that without intervention the risk profile will worsen by 2013. The Minister for Finance €1bn rescue fund is no doubt required to provide the funds needed by the bank to stabilise less damaged operations and fund post-merger balance sheets. Credit unions will be required to fund stabilisation by contributing 1% of assets which amounts to c€140m - there's no mention of ILCU's existing €120m stabilisation fund which has already committed over €50m to about twenty viable and non-viable credit unions. The report mentions that 17 credit unions have not yet published accounts for 2010. With extensive new powers, the bank can take over the management of credit unions , close them down and transfer their business to others. Swinging change will also see boards and managers required to be fit and proper and comply with stricter regulations. Compliance will be enforced and non-compliance dealt with under the banks sanctioning mechanism. Interestingly the commission may have has brought to an end a decade of protracted fruitless advocacy of the trade body ILCU which argued for retaining control of its resolution and stabilisation system. So obdurate was its advocacy that last year it demanded that regulation be separated from the central bank and switched from Finance to another department. Having participated in a commission that has rubber stamped the central banks regulatory strategy will ILCU change its spots? How can it stand by its statements on national media earlier this month that no credit union was in financial difficulty after the publication of the report?