PRESS RELEASE

National Supervisor Forum Calls for Governance, Community Values and Sustainable Growth to Remain at the Heart of the Future Credit Union Strategy
NSF appears before Joint Oireachtas Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation and Taoiseach

The National Supervisor Forum (NSF) yesterday appeared before the Joint Oireachtas Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation and Taoiseach as part of its discussion on “Enabling the Growth of the Credit Union Movement.”

Representing Credit Union Board Oversight Committees and Supervisory Committees across the island of Ireland, the NSF used the opportunity to highlight the critical role of strong governance, effective oversight, and the preservation of the credit union movement’s community ethos as the sector prepares for its next phase of development.

The NSF welcomed the Government’s recognition of the important role credit unions play in Irish society and local communities, including the commitment contained within the Programme for Government to develop a sector-led strategy to support the sustainable future of the movement. The NSF confirmed its commitment to working constructively with representative bodies, stakeholders and the Department of Finance to contribute to this important work.

Speaking before the Committee, NSF Vice Chairperson Dr Deirdre Kelleher said:

“Credit unions have demonstrated remarkable resilience over decades, adapting to changing economic, regulatory and technological environments while maintaining their unique connection with members and communities. The future of the movement must ensure that growth and innovation are supported by strong governance and effective oversight.”

The NSF emphasised that the Credit Union (Amendment) Act 2023 provides an opportunity for the sector to evolve by supporting increased lending capacity and expanded service offerings. However, the NSF stressed that growth must be underpinned by robust governance frameworks, effective decision-making and strong risk management practices.

The NSF highlighted that governance should not be viewed simply as a regulatory requirement, but as a key driver of sustainable success. Strong governance structures ensure that credit unions remain resilient, accountable and capable of meeting the needs of members in an increasingly complex financial environment.

During its engagement with the Committee, the NSF outlined a number of key areas it believes should be considered as part of the future development of the credit union sector:

1. A sustainable growth strategy supported by strong governance
The NSF called for growth initiatives to be accompanied by appropriate governance arrangements, ensuring that increased scale, new services and strategic ambitions are supported by effective oversight.

2. Recognition of the value of the community-based credit union model
The NSF highlighted that credit unions’ strength comes not only from financial services but from their co-operative structure, volunteer tradition and member-first approach. These values have created trust and confidence within communities and must remain central as the sector evolves.

3. Maintaining local connection while managing consolidation
The NSF acknowledged that mergers and consolidation may provide benefits for sustainability and resilience but cautioned that the sector must ensure that local engagement, democratic participation and meaningful member representation are not weakened.

4. Ensuring oversight structures remain effective into the future
The NSF highlighted the importance of Board Oversight Committees and Supervisory Committees in supporting accountability, transparency and member confidence across the movement.

5. Establishment of a National Credit Union Data and Research Framework
The NSF called for the establishment of a national credit union data and research framework to support better understanding of the sector and strengthen evidence-based decision making.
The NSF highlighted that, at present, there is no single central repository that brings together the full range of appropriate data and insights on the credit union sector. A comprehensive national framework would support Government, regulators, representative bodies and credit unions in developing a clearer evidence base on sector trends, member needs, sustainability, governance, financial performance and community impact.

As the credit union sector progresses with the development and implementation of a national sectoral strategy, the NSF believes that access to accurate, timely and meaningful data will be essential to identifying opportunities, managing risks and ensuring that future policy decisions are informed by a complete understanding of the sector.

NSF Chairperson John Higgins said:

“The future strategy for credit unions must be built on strong evidence as well as strong ambition. A national data and research framework would provide the insight needed to support sustainable growth, protect the community ethos of credit unions and ensure that decisions are grounded in the realities of the sector.”

The NSF welcomed the Committee’s engagement and reiterated its commitment to playing a constructive role in shaping a sustainable, innovative and community-focused credit union sector.