Credit unions told they must reform

CREDIT Unions will fail in the current financial crisis because of insufficient reserves, poor management and business decision-making which will require a significant restructuring of the sector, the registrar of credit unions James O’Brien has warned.

Speaking at the credit unions’ National Supervisors Forum Mr O’Brien said some credit unions are already experiencing significant difficulties in their day-to-day business.

“A failure of one or more credit unions could lead to a significant loss of confidence across the sector. This must be avoided.