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ILCU welcomes publication of Financial Conditions of Credit Unions Report

Posted on: 30 Mar 2023

The Irish League of Credit Unions (ILCU) today (Thursday 30th March 2023) welcomes the publication by the Central Bank of Ireland of the annual “Financial Conditions of Credit Unions 2022 report”.

David Malone, Chief Executive Officer of the Irish League of Credit Unions welcomed the report and highlighted, “Credit Unions are open for business, with a wide, geographical spread of Credit Unions throughout Ireland in over 400 locations, fast loan approvals and a range of low-cost loans for members and offer current accounts for people who may need an alternative in the aftermath of Ulster Bank and KBC leaving the market. ILCU credit unions remain well capitalised, and arrears have been well managed. There are huge opportunities for Credit Unions to provide more mortgages, cultivate loans, SME loans and personal loans in a rising interest rate environment where credit unions offer exceptional value for money.”

Mr Malone continued, 
“The Credit Union (Amendment) Bill is one of the most significant pieces of legislation to be published, allowing as it does for greater collaboration, co-operation and growth within the sector. The legislation allows for the establishment of corporate credit unions and credit union service organisations that would permit groups of credit unions to come together and collectively pool their resources by investing in back off functions which would make it more cost effective and economical for credit unions to provide a wider range of services. We look forward to its passing through the Oireachtas in a timely manner”.

The report shows that total loans outstanding increased to pre COVID-19 levels and total savings increased to €17 billion. The loan to assets ratio remains low at 28.4% whereas arrears have fallen to a 7-year low of 3.0% and that significant capacity remains at a sectoral level for additional house and business lending.