The Minister for Finance has signed into law regulations that provide for contributions by authorised credit institutions to a Resolution Fund pursuant to Section 15 of the Central Bank and Credit Institutions (Resolution) Act 2011.
The target level of funding for the Resolution Fund is €100 mn and institutions will contribute €25 million per annum until this €100mn target is achieved. The Minister has already contributed €250 million to the fund and the legislation provides that he is entitled to be reimbursed for this contribution. This initial €250 million contribution from the Minister is intended mainly to fund the costs of resolving credit unions in difficulty. Contributions from authorised institutions will be used in the first instance to reimburse the Minister’s €250 million contribution and the levy on authorised credit institutions will continue until a fund of €100mn is attained.