ILCU Response to Central Bank's Consultation Paper on Potential Amendments to Lending Framework for
Posted on: 24 Oct 2018
The Central Bank of Ireland has today published the Consultation Paper on Potential Amendments to the Lending Framework for Credit Unions.
Responding to this publication, ILCU CEO Ed Farrell said: 'The ILCU, on behalf of its affiliated credit unions, has long campaigned for a review of the restrictive, long-term lending limits imposed on the credit union movement - and so welcomes this move by the Central Bank.
With the recent launch of the ILCU’s new standardised residential mortgage solution, CU Home, it is now more crucial than ever that the lending limits are amended to enable credit unions to offer home loans in a meaningful way. While credit unions have always held a significant share of the consumer lending market, essentially this represents just 13% of overall household lending. We have been keenly aware of the need to expand our reach in the residential mortgage market in order to ensure credit union members, and consumers in general, are benefitting from real competition and diversity. We can only become significant players in the mortgage market with an amendment to the current lending limits.
The ILCU will continue to proactively engage with the Central Bank on this consultation process and will submit a comprehensive proposal in the coming weeks.’