"Credit union sustainability: the role of risk management, in sector restructuring and business model change" Registrar of Credit Unions Patrick CaseyMarch 2021
The Registrar of Credit Unions, Patrick Casey addressed the Credit Union Managers Association’s Spring Conference. In his speech Mr Casey covered key aspects of 2020 and then outlined the Central Bank’s vision for the Credit Union sector in 2021.
It was stated “Our vision for the sector remains: “Strong Credit Unions in Safe Hands”, where we see:
- ‘Strong Credit Unions’ as being financially strong and resilient, enabled by sustainable, member-focussed business models, underpinned by effective governance, risk management and operational frameworks, and where they can be resolved when they get into difficulty; and
- Credit unions are ‘in Safe Hands’ when they are effectively governed, professionally managed and staffed by competent, capable people, who take ownership of and prudently manage current and emerging risks.”
The vision for the sector will be implemented by the adoptions of four strategic priorities. These are: A.
Effective and Proportionate Supervision – The Central Bank expects credit unions to have core prudential foundations including strong governance and robust risk management.
B. Managing disruptive change – Business model innovation, restructuring, climate change and the advances in technology were considered here.
C. Tailored and Proportionate Regulation – the focus here will be on the effective implementation of recent regulatory framework enhancements.
Sector Engagement - In 2021, there will be continued extensive two-way communication and engagement with individual credit unions and sector stakeholders.
It is clear the Central Bank is focused on having a strong, viable and vibrant Credit Union sector. The vision as outlined will provide challenges and opportunities for the sector. As Credit Unions won the Best Customer Experience Award for the sixth consecutive year in 2020 as per the CXi Report, no doubt they will rise to these challenges.
For the full address click HERE