ILCU Statement on Drumcondra Credit Union Ltd.
Posted on: 02 Jul 2020
The Irish League of Credit Unions (ILCU) notes the appointment of provisional liquidators to Drumcondra Credit Union Limited by the Central Bank of Ireland today, Thursday 2nd July.
This decision is very disappointing for the members of Drumcondra Credit Union who have relied on its valued services for over 50 years. The eligible savings of members of Drumcondra Credit Union will be covered by the Deposit Guarantee Scheme (DGS), up to €100,000 per member.
The Board of Directors of Drumcondra Credit Union working with the ILCU had, for some time, sought to bring about a transfer of Drumcondra Credit Union to another credit union on a voluntary basis. However, this was found not to be feasible.
The ILCU is conscious of the demand for the services of a credit union in the local area and it will be exploring how this can be delivered for members in the future. The ILCU, in its capacity as the largest trade and representative organisation of credit unions on the island of Ireland, will explore all possibilities in this regard.
Each credit union is an independent, autonomous entity and as such the resolution of Drumcondra Credit Union does not impact upon the position of any other credit union. Overall, the credit union movement is strong and extremely well capitalised.
ILCU figures to end March 2020 show that;
- There are over 220 credit unions in the Republic of Ireland and the total capital held by these credit unions is €2.62 billion.
- Credit union loan provisions exceed loan arrears by €129 million, and this buffer is in addition to the capital reserves of €2.62 billion held.
- Credit unions now have €973 million in excess capital above the 10% minimum capital-to-assets requirement.
- The average capital-to-assets ratio among ILCU credit unions is 16%.
Members of Drumcondra Credit Union will receive compensation in respect of their eligible deposits up to €100,000 per person. The DGS will make payments to members of Drumcondra Credit Union in the coming weeks.