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

2. 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.

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 1 st 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 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

9. 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”

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. 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

14. 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

15. ReBo Strategy Building & Supporting Healthy Credit Unions & Communities Co-Operative Principles & Practices in Communities Financially Sustainable for Members & Communities Financial Inclusion

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

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?