OVER ONE QUARTER of credit unions are limited in what they can lend members.
A parliamentary response from last month by Finance Minister Michael Noonan shows that a total of 76 institutions are subject to restrictions.
Of those, 25 are restricted from lending anything above €30,000, while 36 have a €20,000 ceiling. Another eight are limited to lending below €10,000.
A further three each are limited to €40,000 and €50,000 each.
There are 13 credit unions that have a monthly maximum lending restriction imposed.
However, the 26% of lenders who are restricted is exactly half of the number it was last February, Noonan said.
“In February 2015 the Central Bank commenced a lending restriction review initiative, whereby credit unions subject to a lending restriction that are satisfied they have made the necessary improvements and have embedded these improvements in robust risk sensitive lending practices, could apply for a review of their lending restriction.
“The closing date for receipt of applications to review lending restrictions under this initiative was 30 September 2015.”
The Central Bank will occasionally impose the restrictions in cases where there are questions over a credit union’s liquidity or stability.
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