Guidance

SS2/23 – Supervising credit unions

Chapter

Maximum deposit levels

Printed on: 08/09/2024

Rulebook at: 29/08/2023

5

Maximum deposit levels

5.1

When a credit union gives notice in accordance with Rule 2.3 of the Credit Unions Part of the PRA Rulebook, it will be expected to inform the PRA of its current loans to assets, capital, and liquidity ratios. It will also be expected to provide the PRA with details of the proposed use of the funds to be deposited and to confirm that its single customer view file is complete and up-to-date. The credit union is expected to satisfy the PRA that its acceptance of such a deposit would be prudent.

  • 29/08/2023

5.2

The PRA expects that any credit union that intends to issue fixed-rate shares or deposits complies with the statutory mandatory requirements that must be satisfied before beginning such activity.[2]

  • 2. These requirements are set out in section 7A (1) of the Credit Unions Act 1979.
  • 29/08/2023

5.3

Credit unions that wish to offer shares in an Individual Savings Account (ISA) tax-free wrapper are expected to refer to the relevant regulations issued by HM Revenue and Customs (HMRC). Credit unions should be aware that approval from HMRC does not provide any degree of exemption from compliance with the statutory requirements referred to above in paragraph 5.2.

  • 29/08/2023