Credit Union Act 1997

Assets and liabilities ratios and structures.

85

85. (1) A credit union shall at all times keep a proportion of its total assets in liquid form (hereinafter referred to as “ liquid assets”), being such a proportion and having such a composition as to enable the credit union to meet its liabilities as they arise.

(2) For the purpose of complying with subsection (1), a credit union shall have regard to the range and scale of its business and the composition of its assets and liabilities; but nothing in this Act shall be taken to prevent a credit union keeping liquid assets in addition to those required for complying with subsection (1).

(3) The F172 [ Bank ] may from time to time by notice in writing require a credit union to maintain, between its assets and its liabilities—

( a) a ratio specified in the requirement,

( b) a ratio which does not exceed a ratio so specified, or

( c) a ratio which is not less than a ratio so specified,

and a ratio may be so specified as a percentage of the assets or liabilities concerned.

(4) A requirement of the F172 [ Bank ] under subsection (3) may be expressed to apply in one or more of the following ways—

( a) in relation to all credit unions or to credit unions of a category or categories specified in the requirement;

( b) in relation to the total assets or total liabilities of the credit unions concerned or in relation to such assets or kinds of assets or such liabilities or kinds of liabilities as may be specified in the requirement;

( c) in relation to such time or times or during such period or periods as may be so specified.

(5) The F172 [ Bank ] may, from time to time, by notice in writing specify, as respects a credit union, requirements as to the composition of its assets or, F173 [ subject to regulations made under section 27(2) ] , the composition of its liabilities.

(6) In this section—

( a) “liabilities” include such contingent liabilities as the F172 [ Bank ] may from time to time specify by notice in writing for the purposes of this section; and

( b) liquid assets” mean such assets as the F172 [ Bank ] may from time to time specify by notice in writing for the purposes of this section;

and, until the F172 [ Bank ] specifies assets as mentioned in paragraph (b), “liquid assets” include assets held in a form provided for by section 43 .

(7) Where, under the preceding provisions of this section, the F172 [ Bank ] by notice in writing imposes a requirement or specifies any matter, and the requirement is to apply or the matter is specified otherwise than in relation to a particular credit union, the power to give the notice shall be exercisable by rules.

Annotations:

Amendments:

F172

Substituted (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 35(1) and sch. 1 pt. 24 item 51, S.I. No. 160 of 2003, subject to transitional provisions in s. 36 and sch. 3 para. 26.

F173

Substituted (1.01.2016) by Credit Union and Co-operation with Overseas Regulators Act 2012 (40/2012), s. 35 and sch. 1 item 76, S.I. No. 584 of 2015.

Editorial Notes:

E55

Previous affecting provision: power pursuant to section exercised (1.11.2010) by Credit Union Act 1997 (Section 85) Rules 2010 (S.I. No. 515 of 2010), in force as per reg. 6; revoked (1.01.2016) by Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (S.I. No. 1 of 2016), reg. 49(b), in force as per reg. 1(2).

E56

Previous affecting provision: power pursuant to section exercised (27.08.2009) by Credit Union Act 1997 (Section 85) Rules 2009 (S.I. No. 344 of 2009), in force as per reg. 7; revoked (1.01.2016) by Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (S.I. No. 1 of 2016), reg. 49(a), in force as per reg. 1(2).