Easing of lending restrictions offers credit unions hope

More than 80% of credit union applications, seeking the removal of lending restrictions reviewed by the Central Bank, have to date been approved as the sector battles for greater freedom to lift lending levels from a 15-year low.

Many credit unions have been highly critical of the Central Bank’s restrictions which they claim are unreasonably onerous.

Under the regulations, credit unions are limited to lending up to 30% of their loanbook over five years and up to 10% over 10 years.