Stricter reserve ratio to be imposed on credit unions

Stricter controls are being implemented on the amount of money credit unions must hold on deposit.

From the end of September, credit unions will be required to hold a Regulatory Reserve Ratio of 10%.

Those who cannot meet the requirement by September 29 must have a Regulatory Reserve Ratio of 7.5% and will be given five years to gradually increase it to 10%.

The move has been welcomed by the Irish League of Credit Unions.