Response to Financial Conditions of Credit Unions Report

Media Release: 24 February 2017

The Central Bank of Ireland has today (24th February 2017) released a report entitled Financial Conditions of Credit Unions; 2011-2016.

Below is a statement from the Irish League of Credit Unions in response to this report:

An ILCU spokesperson said:

“While credit unions affiliated to the Irish League of Credit Unions are in a positive financial position, with lending up by €231 million in the past year and arrears falling for 20 consecutive quarters, growing the loan book continues to be a priority. Credit unions have been very proactive in this regard over the past year. This has been demonstrated by the fact that the vast majority are now reporting lending increases.

The ILCU also continues to be proactive in its efforts to grow lending, and is currently working with credit unions to develop a full service mortgage solution. It is vital however that the long term lending limits imposed on credit unions are amended to give credit unions the opportunity to offer mortgages in a significant way. In addition, the ILCU has developed a comprehensive proposal outlining how surplus credit union funds could be used for social housing. The ILCU welcomes the announcement by the Central Bank that it is to review investment regulations in 2017. The ILCU would welcome a move to broaden the current investment classes permitted for credit unions in order to pave the way for such an investment in social housing.

With the average credit union capital ratio at 16%, credit unions are well positioned to withstand additional financial stresses. Overall ILCU credit unions hold €914 million in excess capital above the 10% requirement, and these funds are in addition to €94 million in excess loan provisions.”

 

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