Merger mania ‘may be catastrophe for credit unions’

Merger mania could be catastrophic for the troubled credit union sector, the Central Banks fears.

The bank’s registrar of credit unions, James O’Brien, yesterday acknowledged that mergers will take place but cautioned that a piecemeal approach to changing the structure of the sector is not ideal.

“The prospect of unplanned merger mania where credit unions jockey for position within the sector is also a concern for us,” Mr O’Brien told the Credit Union Managers’ Association spring conference, in Athlone, Co Westmeath. “Ill-thought out voluntary mergers happening in a chaotic fashion with little professional oversight of the restructuring process could have a catastrophic impact on the sector where the outcome simply creates bigger weak entities incapable of developing.”