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Restructuring of Irish Credit UnionsYour Partner for Sustainability
Joe O’TooleReBo Board Member
24 May 2013Credit Union Summer School
MISSION OBJECTIVE
to underpin the stability and long term viability of credit
unions and the sector at large and
to provide an opportunity for stronger credit unions to develop a more sustainable business model.
Commission on Credit Unions
• Changing TogetherPartners in Sync
• Restructuring Voluntary Incentivised Time – Bound Basis Overseen by a Board (ReBo)
• Regulation Strengthened Regulatory
Framework Not one-size-fits-all
• Legislation Credit Union and Co-Operation
with Overseas Regulators Act 2012
Guiding Aims of Restructuring• Protection of Credit
Union Members Savings
• Stability & Viability of CUs and movement at large
• Preservation of CU identity & ethos
• Develop a world class CU sector in Ireland
Arrival of ReBo
• Conceived by Commission on Credit Unions
• Delivered by Legislation Credit Union Act 2012
• Needing Intensive care in early months
Establishment of ReBo Established 1st Jan 2013• Governance, structures,
executive, IT systems, facilities now in place
• Communications – Website, Information, Expression of Interest form
• Analysis of sector in progress• Developing processes for
restructuring• Developing relations with all
key stakeholders• New CEO
Culture & Philosophy
ReBo Board• Broad mix of Public &
Private sector experience
• Internationally Experienced Chairman
• Sector Representatives & Independents
• Financial & Policy experts
• Here to listen, assist, help….
“We would acknowledge that now is the time for greater cohesion and co-operation between successful co-operative Credit Unions to redesign the Credit Union sector in a meaningful way for our members and potential members”
ReBo will work with all Stakeholders
ReBo
Credit Unions-Fully informed
- Voluntary-Strategic positioning
-Sustainable
Dept. of Finance/Taxpayer- CU Implementation Group-Credit Union Fund- Value for money
Representative Bodies / Affiliation
- ILCU-CUDA-CUMA
RCU-INFO SHARING
- NEW REGULTORY REQ- FITNESS & PROBITY
ReBo is….• For Transfers &
Amalgamations• For Voluntary
Restructuring Process • Independent• Confidential with
Information• In Support of
Sustainable & Viable CU Movement
ReBo is not…..
• Imposer of view or model on sector
• Liquidator• Auditor• Dept. of Finance• Regulator / RCU• Rescuer of Failed CUs• To fill “Capital Holes”
CU’s; Future Options & Outcomes
• Independent No change
• Resolution Not Viable and Liquidated
• Stabilisation Potentially Viable receives resources• Restructuring Merge,Amalgamate,Transfer via ReBo
Irish Credit Unions
• ChangeWe are at a crossroads
• Opportunity = work with ReBo and all stakeholders to flourish for the future
• LeadershipCU Boards and staff can improve members’ lives and communities
Transformational Change and Growth
Challenges• National economic
situation• Restructuring in Banking
sector• Personal Insolvency Act• Stressed CU business
model• Increasing regulation• New governance
requirements• Elimination of Mutuals
Opportunities• Members = Owners +
Customers• Depth of relationship with
Communities• Boards, Managers and
Employees live and work in the Community
• Shrinking bank sector and reduced/remote service creates new CU space
• Trusted partner with core values and culture
• Compelling case for growth
Credit Unions• Strengthened balance
sheet• Stronger and efficient
entity• Expanded common
bond• Economies of Scale• Increased services to
meet members needs• Wider pool of skilled
resources
Movement• Opportunity to put
sector on a sound footing
• Sustainability • Improve CU brand• Effectiveness &
Efficiency• Increased membership• Making a difference to
communities
Aims of Restructuring
Opportunities throughout member lifecycle
Members Needs / Services
Products / Range of Services
Community Investment
Core IT Systems,
Apps, online / mobile
Sustainability
Exceptional Member Service
Experience
Advice
Competitive Price
Socially Responsible
ReBo Strategy
Building & Supporting Healthy Credit Unions & Communities
Co-Operative Principles & Practices in Communities
Financially Sustainable for Members & Communities
Financial Inclusion
Some areas to assess: • Membership • Opportunity for
Growth• Existing Services• New & Additional
Services - Members Needs
• Regulatory Requirements
Assess Your Credit Union
Restructuring of Irish Credit Unions
ReBo will support Credit Unions to succeed based on:• member focus• being sound and
financially stable• good governance • voluntary participation• excellent service
provision
Over to You : Advise Us!
What are the characteristics of a viable CU?Can we regain the mutual space?What are the main worries about restructuring?How would restructuring impact on members’ services?What are the basic services which we should provide?What are the reassurances you would feel necessary?What would your advice to ReBo be?