Independent Review of Credit Unions

RBK’s Credit Union specialists provide a range of independent review services that allow you greater confidence in your key operations.

Our independent review services include:

Loan Book Reviews

The loan book is the life blood of your credit union. Traditionally when loan book reviews were carried out, it was to satisfy the requirements of the Central Bank. Now, however, credit unions themselves increasingly seek independent assessment of the overall health of their loan book.

Resolution 49, the standard calculation for the loan book provision, is based on a computer generated mathematical equation which does not provide qualitative information about a member’s personal and financial circumstances. In addition, a provision based on Resolution 49 may not be enough to satisfy the requirements of current financial reporting standards including FRS 102.

Our independent loan reviews also cover credit control and lending policies to ensure your credit union is complying with regulatory requirements. Following our review, we provide your Board with a comprehensive report that can be used to assess the underlying risk of your loan book.

Investment / Liquidity Reviews

Credit Unions need to securely invest excess funds at an adequate rate to ensure a return for their members. Simultaneously, they must maintain sufficient liquid resources to meet the stringent Central Bank liquidity requirements.

At RBK we provide a comprehensive review of your credit union’s investment portfolio which covers:

  • Impairment
  • Assessment of capital guarantees and counter-parties
  • Compliance with guidance notes
  • Assessment of the appropriateness of the accounting policy
  • Liquidity

Following our review, we provide a detailed report setting out our findings together with recommendations for improvement.

Post Merger Reviews

Following the completion of a merger, both the Credit Union and the Central Bank need to be satisfied that any issues identified during the Due Diligence phase are adequately addressed by the Credit Union and that the subsequent merger integration process is achieved. 

At RBK, we use our specialist knowledge of the sector to critically evaluate the financial performance of the newly merged entity, the integration of policies and procedures and the effectiveness of the risk, compliance and internal audit functions. 

For further information or to discuss your Credit Union’s specific requirements, please contact a member of our team.

Corporate Governance Reviews

Stable credit unions require strong corporate governance. At RBK, we offer a corporate governance review service which covers the policies and procedures required under the Credit Union Act 1997 as amended. Your Credit Union is obliged to review and update these policies at least annually. Our corporate governance review will assist your Board members to:

  • Understand their obligations and define their role
  • Put in place the required policies and procedures
  • Review existing policies and procedures to identify any weaknesses
  • Ensure policies and procedures reflect the Credit Union’s practices and identify areas where improvement is required.

For further information or to discuss your Credit Union’s specific requirements, please contact a member of our team.