THE HEAD OF the Irish League of Credit Unions says that there is “no evidence” that 100 credit unions are in serious difficulty.
Reports today said that one quarter of the movement’s 393 individual establishments were in trouble and had been placed on a Central Bank watchlist.
Although the Central Bank says that it cannot comment on it, sources insist that the list covers a range of regulatory concerns that the Central Bank has, not just loan repayments.
In light of the decision to put Newbridge Credit Union into Permanent TSB, the spotlight is very much on credit unions, but ILCU chief executive Kieron Brennan says that he has seen no evidence to suggest the movement is in trouble.
“It is the view of the ILCU that that there are not 100 credit union in “serious trouble”.
“Our figures tell us otherwise. There is no specific detail in the newspaper articles which substantiate the claim.
“The ILCU member credit unions have withstood a sharply deteriorating economic situation over the last five years. While, like other financial institutions, they were exposed to the fall in economic activity, credit unions are now operating from a firmer financial base.
Credit unions are well capitalised, with total capital of €1.86 billion in ROI credit unions.
“Overall ROI credit unions have over €600 million in surplus capital above the levels required by the Central Bank. These capital buffers are in addition to the provisions credit unions have set aside for bad and doubtful debts.”
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