Consolidation of credit unions continues apace

The consolidation of credit unions continues apace, with Dublin, Cork, and Galway having five or more with assets of at least €100m, the Central Bank’s latest financial health report reveals.

The number of credit unions has fallen to 241 from 406 at the height of the financial crisis in 2011, the report says, with the contraction particularly marked for credit unions holding less than €40m in assets.

Nonetheless,credit unions enjoy “the loyal trust” of around 3.3m members, the report reveals.

“The trends highlighted in our latest financial conditions statistical release reflect the significant challenges that credit unions have faced over the 2011 to 2019 period, due to a changing nature of retail financial services and the low-interest rate environment,” Patrick Casey, the registrar of credit unions said.

“Going forward, as those challenges will likely persist, credit unions need to take greater ownership of their business model development in order to achieve sustainability for members.”