Regulatory restrictions ‘stifle’ credit union growth

The credit union sector is overburdened with regulatory restrictions and limitations, which is stifling its growth potential.

That is according to Fianna Fáil finance spokesman Michael McGrath, who was commenting on new figures showing that there are 189 credit unions operating with lending restrictions with fewer than 10%, or only 18, allowed to lend €40,000 and more.

“The sector can only thrive if it is able to issue new loans. In too many instances, the ability of credit unions to do just that is being unnecessarily constrained. The manner in which legislative changes have been implemented has disadvantaged credit unions and given a competitive advantage to the banking sector.