CUs get new date for regulatory ratio
The Financial Regulator and the Registrar of Credit Unions announced, back in April, that Irish credit unions would be required to maintain an RRR of not less than 10%. The RRR represents the amount of funds held in reserve by unions, as a percentage of their total assets. The increased percentage is to protect against the risk of losses and ensure that unions can keep adequate cash reserves and, ultimately, stay afloat and keep customer confidence.
Earlier this year, when outlining Credit Union performance for 2008, Irish League of Credit Unions (ILCU) chief, Kieron Brennan warned that this year (up to the end of September) would be the movement’s first tough year “in living memory.” It is understood that approximately one quarter of the country’s 400 or so credit unions are currently operating at a loss.
