Credit union may face ‘shocks’

CREDIT unions have been warned that they may still face shocks in some investment portfolios while also told that governance of their boards will be scrutinised.

Deputy registrar of credit unions, James O’Brien, said that to a certain extent much of the investment losses at credit unions have already materialised and been recognised in the financial statements but added a “word of caution” that there may still be shocks, given the range and type of investment products bought by credit unions over many years.

In a hard-hitting speech to the Credit Union Managers Association, he urged credit unions to continue to make appropriate provisions for bad and doubtful debts.