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Restructuring of Irish Credit Unions Your Partner for Sustainability

Restructuring of Irish Credit Unions Your Partner for Sustainability. Joe O’Toole ReBo Board Member 24 May 2013. Credit Union Summer School.

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Restructuring of Irish Credit Unions Your Partner for Sustainability

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  1. Restructuring of Irish Credit UnionsYour Partner for Sustainability Joe O’Toole ReBo Board Member 24 May 2013 Credit Union Summer School

  2. MISSION OBJECTIVEto underpin the stability and long termviability of credit unions and the sector at large andto provide an opportunity for stronger credit unions to develop a more sustainable business model.

  3. Commission on Credit Unions • Changing Together Partners 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

  4. 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

  5. Arrival of ReBo • Conceived by Commission on Credit Unions • Delivered by Legislation Credit Union Act 2012 • Needing Intensive care in early months

  6. 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

  7. 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”

  8. ReBo will work with all Stakeholders

  9. ReBo is…. 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” • For Transfers & Amalgamations • For Voluntary Restructuring Process • Independent • Confidential with Information • In Support of Sustainable & Viable CU Movement

  10. CU’s; Future Options & Outcomes • Independent No change • Resolution Not Viable and Liquidated • Stabilisation Potentially Viable receives resources • Restructuring Merge,Amalgamate,Transfer via ReBo

  11. Irish Credit Unions • Change We are at a crossroads • Opportunity = work with ReBo and all stakeholders to flourish for the future • Leadership CU Boards and staff can improve members’ lives and communities

  12. 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

  13. Aims of Restructuring Credit Unions Movement Opportunity to put sector on a sound footing Sustainability Improve CU brand Effectiveness & Efficiency Increased membership Making a difference to communities • Strengthened balance sheet • Stronger and efficient entity • Expanded common bond • Economies of Scale • Increased services to meet members needs • Wider pool of skilled resources

  14. Opportunities throughout member lifecycle Products / Range of Services Members Needs / Services Exceptional Member Service Experience Community Investment Core IT Systems, Apps, online / mobile Advice Competitive Price Sustainability Socially Responsible

  15. ReBo Strategy

  16. Assess Your Credit Union Some areas to assess: • Membership • Opportunity for Growth • Existing Services • New & Additional Services - Members Needs • Regulatory Requirements

  17. 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

  18. 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?

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