Credit unions lend €1.1bn as new restrictions impact on loan book

Irish credit unions have lent €1.1bn to their members in the last 12 months, delegates of the Irish League of Credit Unions (ILCU) heard over the weekend.

New restrictions on lending have had a severe impact on the size of the credit union loan book, but membership of the movement continues to grow. There are 3.1m members across 32 counties making the Irish movement one of the most popular in Europe.

The ILCU held its annual general meeting in the University of Limerick over the weekend which saw over 2,000 delegates from nearly 500 credit unions attend focus groups and discussions on the challenges facing the movement.

Delegates are keenly aware that the credit union movement is facing serious restructuring as a result of the economic crisis.

Recent regulatory and legislative changes, as well as restructuring within the sector, were key agenda items, as credit unions move to offer a broader range of services to satisfy the increasing needs of their growing membership.

President of the ILCU Jimmy Johnstone said that the credit union wanted to be seen as more than just a provider of loans. “We are a volunteer-led, cooperative, not-for-profit movement and we have much to contribute.

“Our bottom line is not about empire building or status symbols. Sure we provide financial services but we want to provide a lot more.”

Mr Johnstone stressed the community and social role credit unions play. He said this was the core of the movement and something that should not be underestimated. “Credit unions play an educational, social and, of course, community role, the significance of which should never be underestimated. Credit unions are vital components of over 400 culturally and geographically distinct and diverse rural, urban and industrial communities around Ireland.”

Minister for Finance Micheal Noonan said the Government was committed to ensuring that Credit Unions emerge from the financial crisis.

“While much of the focus has been on legislation and regulatory changes, we should not lose sight of the destination. There is no doubt that credit unions are going through a major transformation. The Government remains fully committed to supporting the credit union movement throughout this process. We want credit unions to emerge stronger so that you can continue to play an important role in local and national life in this country.”