Information Note – Credit Union Levies & Charges
Credit unions are subject to a number of levies and charges for different purposes, the majority of which are administered by the Central Bank. The levies administered by the Central Bank are as follows in order of materiality:
- Deposit Guarantee Scheme (“DGS”)
- Resolution Fund levy
- Stabilisation Scheme Levy
- Industry Funding Levy
Charges related to the DGS, which is an industry-wide guarantee scheme established under Irish and EU law for all deposits of banks and credit unions authorised by the Central Bank account for approximately 50% of the levies and charges administered by the Central Bank on the credit union sector.
Levies such as the Savings Protection Scheme Levy, the Financial Services & Pensions Ombudsman Levy and the Investor Compensation Scheme Levy are not collected by the Central Bank.
Levies and charges have generally risen in absolute terms as the sector has grown and as income has fallen. Each of these charges are an expense in the credit union’s accounts.
This Information Note provides details on the purpose of individual levies and charges for the credit union sector and the statutory basis for each, where relevant.
Information Note – Credit Union Levies & Charges Revised 12th June