Credit union member savings up 14.5%

DESPITE a 14.5% surge in Irish credit union member savings to €12.6 billion last year, major changes are needed if the movement is to develop even further.

This is according to the chief executive of the Irish League of Credit Unions (ILCU), Liam O’Dwyer, who said that the strength of credit union lending growth by comparison to the Irish financial marketplace continues to lag.

“Clearly the movement has some efficiency grounds to make up in respect of systems, marketing and convenience for borrowers, but regulatory restrictions on both sides of the Border do credit unions no favours.”

He presented the movement’s 2005 annual report yesterday in the presence of Taoiseach Bertie Ahern.

ILCU president Anne O’Byrne said: “Legislative change will be required very soon if the financial co-operative movement which is the credit union movement is to be allowed compete properly with other financial service providers.

“We are in ongoing discussions with the relevant authorities about the changes needed.”

The average credit union loan in Ireland last year was €7,600, almost double what it is in Northern Ireland.

The report showed members’ loans up 7% from the previous year to just over €7 billion. Average savings per member were 4,200.

Meanwhile, the 150,000 SSIAs held by members in credit unions will be worth €1.8 billion as they mature over the next 15 months. Mr Ahern praised the commitment of the 9,200 volunteers and 3,500 staff of the credit union movement for their contribution to the social and economic life of the country.

“Credit unions are now a vital part of every community. The co-operative principle has always had a strong appeal in Ireland and the evidence from this latest annual report is that this appeal is actually growing.”

He said the Government is keen to foster the spirit of community self-help and empowerment and he complimented credit unions for continuing to provide financial services in rural and disadvantaged communities.