ESB Credit Union (Savvi) fined €185k by Central Bank

[Brendan Burgess]

Dublin's Savvi Credit Union fined by Central Bank

The Central Bank has reprimanded and fined Dublin's Savvi Credit Union a total of €185,500 for three breaches of credit union legislation.

www.rte.ie

The credit union failed to comply with the Central Bank's limit for long-term loans, it failed to put in place appropriate systems, controls and governance arrangements to manage long-term lending and also paid a director, which is prohibited under credit union legislation.

Savvi reimbursed travelling expenses, totalling €28,341, to one of its directors over a period of four years in excess of the applicable Civil Service Rates.

 

[Brendan Burgess]

I think that the name "Savvy" is ironic.

Brendan

 

[24601]

The Central Bank's response seems pretty disproportionate to the breaches identified. The payment of remuneration of 28k over 4 years isn't astronomical and certainly wouldn't warrant a €185,000 fine. They were marginally over their longer term lending limit, a limit that is to be replaced in 2020 anyway. They shouldn't have advanced the additional 9 loans but it's hardly major level stuff, and it's probable that those loans had been applied for at the time they exceeded the limit. Maybe there's something more to it than meets the eye.

 

[Sarenco]

The Central Bank's response seems pretty disproportionate to the breaches identified.

I think that's putting it mildly - on the face of it, this looks way over the top.

 

[24601]

I think that's putting it mildly - on the face of it, this looks way over the top.

I just saw that the fine was reduced to 185k for effectively pleading guilty! It's actually farcical. They always trot out the "protection of member funds" line when being heavy-handed with credit unions and then they land a massive fine like this on a credit union that can't actually afford it from looking at their accounts.

 

[NoRegretsCoyote]

I just saw that the fine was reduced to 185k for effectively pleading guilty! It's actually farcical. They always trot out the "protection of member funds" line when being heavy-handed with credit unions and then they land a massive fine like this on a credit union that can't actually afford it from looking at their accounts.

They have 21,000 members. It's about €9 each.

I'm personally happy with hyperactive supervisors given what happened a mere decade ago.......

 

[24601]

They have 21,000 members. It's about €9 each.

I'm personally happy with hyperactive supervisors given what happened a mere decade ago.......

What has their number of members got to do without the price of spuds? They barely generated a surplus last year.