Credit union sector needs real reform if it is to survive

THE termination by the Central Bank of a credit union strategic review process, originally requested of it by Finance Minister Brian Lenihan in late 2009, comes as no surprise.

In the intervening 14 months, in line with expected outcomes, credit union financial stability has progressively worsened.

Predictably, these outcomes are a result of a combination of credit union boom-time investment strategy, poor lending practices and a post-boom economic recession.