Mallow Credit Union has applied to the Central Bank to have its area of operation extended to cover Charleville where the neighbouring town’s credit union closed last month.
David O’Connor and Jim Hamilton of BDO were appointed as joint provisional liquidators to the Charleville Credit Union in the High Court last month, on foot of an application by the Central Bank which said the north Cork institution was in a distressed financial position.
In a statement yesterday, Mallow Credit Union expressed its sadness at the situation in Charleville and said its board was “of the opinion that it was incumbent upon them to offer a full credit union financial service to the people who reside or are employed in that common bond”.
“Mallow had made a preliminary application to the Central Bank of Ireland for permission to extend its common bond to cover this area and this has been approved,” the statement read.
The credit union said a motion seeking approval to extend the common bond was approved “by an overwhelming majority of members present”.
“Having had the successful experience of merging with three other like-minded credit unions in 2016, Mallow now operates a seven-branch network across our enlarged community, where in excess of 30,000 active members avail of our services,” the credit union said.
“By achieving this, not only have we demonstrated our capabilities to operate a multi-branch financial co-operative, but we have also been true to our ethos of providing financial services to all areas and members of our community, which is particularly important where no other financial institutions operate.”
Mallow Credit Union chairman David Browne told last week’s AGM that upon receipt of approval from the Central Bank, the institution will proceed to open up its newest branch in Charleville “without delay”.
Charleville Credit Union reopened in a limited capacity last week to allow members make loan repayments.
Payments totalling €39.2m were repaid to the 10,900 members of Charleville Credit Union since liquidators were appointed. The amount represents over 98% of eligible deposits covered by a scheme put in place to protect customers’ money.
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