Government to raise €5.3m through credit union levies

The Department of Finance expects to raise €5.3 million in the coming year through the two main regulatory levies imposed on credit unions.

Minister of State Seán Fleming confirmed on Monday that the Credit Institution Resolution Fund Levy for 2022 will be reduced to 0.024914 per cent of assets, while the Credit Union Stabilisation Levy for 2022 will be reduced to 0.0015033 per cent of assets.

The two levies were established in the wake of the financial crisis as buffers against future instability. Collectively, levies of €5.3 million will be collected for 2022, mirroring the amount collected in 2021.

“As Minister for State with responsibility for Financial Services, Credit Unions, and Insurance, my aim is to support the credit union sector in continuing to provide essential financial services to local communities,” said Mr Fleming.

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“We are maintaining the levies at the amounts charged in 2021 to balance our legal obligations to maintain and grow the funds with the challenges faced by credit unions.”

The Department of Finance and the Central Bank carried out a review of the levy in 2019, following which it was decided that the target size of the resolution fund should be set at €65 million and that this target should be met by 2025.