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?