The Central Bank & Credit Unions

[MrEarl]

Hello,

Exactly what does the Central Bank have the power to do and when would it be deemed to be stepping outside of it's purpose or authority ? In instances where it is deemed to be overstepping the mark, where should one complain ?

I am thinking about a situation whereby the Central Bank has attempting to influence the level of bad debt provisions which a CU has proposed in it's financial accounts. The CUs level of provisions are above the minimum requirement, but the Central Bank is attempting to enforce a higher (non-specified) amount. There is no specific reason for this, the Central Bank just refers to general issues and concerns (in fairness, it's being prudent, but perhaps overly so).

So, at what point does the Central Bank stop being the Regulator and in essence, start to become a "shadow director" ?

Many thanks.

 

[Sarenco]

Certain regulatory decisions of the Central Bank can be appealed to the Irish Financial Services Appeals Tribunal. Their rules, decisions etc are published on their website.

http://www.ifsat.ie/

 

[Engendered11]

I agree completely with what Mr.Earl has said. However, about four years I raised a question at the local AGM on the high level of Provisions-nearly 30% of the net loan book or risk loans. The answer I got was that the Board was being prudent and as a follow on asked what were the actual weeks in arrears over 90 days but never got an answer. Again I asked for the movements on Section 35 or Refinanced Loans and again was stalled. Since then the Provisions have come down a few percentage points but still very high. I would like to see this basic information shown within the footnotes to the Audited Accounts.

 

[MrEarl]

.....I would like to see this basic information shown within the footnotes to the Audited Accounts.

Actually, now that you mention it I think that is an excellent idea.

It would bring a lot of clarity to what state the loan book is believed to be in etc.