Co-operative banks may be the way forward

THE news that Newbridge Credit Union has been taken under care by the Central Bank is a source of great concern to depositors.

However, the situation is not all dire

Credit unions play a vital role in the Irish financial system. Total assets (loans outstanding in the main) as of 2010 were €21 billion, about 5% of the total amount of loans outstanding to Irish residents as of that date. If €1bn is to be required to recapitalise losses that will, proportionally, be a good deal lower than for banks. Credit unions, despite the recent concerns, are as a body very different to banks.