Two credit unions finalise plans to merge

TWO Galway credit unions have finalised plans to merge while others are considering similar moves.

Credit unions, like banks are battling against challenging trading conditions and it is understood that as many as 121 of the 403 credit unions in the State are operating at a loss.

It has been suggested that a number of credit unions may seek to merge over the coming months as a way to combat the difficult operating environment.

The Irish Examiner has learned that Oughterard Credit Union in Galway is to merge with the city-based credit union St Anthony’s & Claddagh to create a credit union of 36,000 members and more than €160 million in assets.

This joint agreement was reached between the boards of both credit unions following what a statement said were “discussions between the parties to identify initiatives to strengthen their operations, improve the service to members and benefit from the efficiencies the merged operation will offer”.

It is also understood that two other credit unions in Dublin are considering a merger.

These credit unions are St Kevin’s Parish Credit Union and Ranelagh Credit Union.

In Galway the merger entity will retain the name St Anthony’s & Claddagh Credit Union.

It will have three branches in Oughterard, Mainguard St and the Westside shopping centre.

The general manager of the amalgamated credit union, Gerry Joyce said: “This merger will represent a progressive and positive move by neighbouring credit unions in continuing the development of our businesses in line with member expectations.

“It will create a larger stronger credit union which will be well positioned to meet the challenges of the current market environment while giving our members greater access to credit union services.”

St Anthony’s Credit Union, founded in 1963, initially operated from the CYMS Hall in Mill St and later Mainguard St. In 1978 St. Anthony’s amalgamated with the Claddagh Credit Union to become St Anthony’s & Claddagh Credit Union. It opened the branch in Westside shopping centre in 1997.

Oughterard Credit Union opened to members in 1998 in premises provided by the community centre.

In a recently published white paper on the future of the credit union movement in Ireland, the Credit Union Development Association (CUDA) said credit unions in difficulty should merge with larger operations.