Credit Union Levy RegulationsNovember 2020
The Minister for Finance, Paschal Donohoe TD announced that the Credit Institution Resolution Levy for 2021 will be reduced to 0.0259% of assets (approximately €5 million) and the Credit Union Stabilisation Levy for 2021 will be reduced to 0.0015544% of assets (approximately €300,000).
Collectively the levies of €5.3 million for 2021 will amount to approximately 0.0274% of assets, a reduction of circa 56% from €12 million in 2019 in the context of growing sector assets.
The Credit Union sector had outlined the impact of the levies in its report “The Movement” which was published in July.
Commenting on the ILCU CEO Ed Farrell said, “In relation to the Credit Union Stabilisation Levy, today’s announced reduction by the Minister means credit unions will pay €2.7m less in 2021 than they paid in 2020. Instead of having to pay €3m next year, they will only pay €300,000. This is a significant cost saving for credit unions which will go some way to alleviating the impact of the COVID-19 pandemic on credit union balance sheets. We are delighted that our campaigning for our member credit unions has delivered and we look forward to continuing to work with both Minister Donohoe and Minister Fleming and the Department of Finance on the review of the Policy Framework for Credit Unions announced in the Programme for Government”.
For the government press release click the link below.