Fears €1.2bn of credit union loans will be written off

THE Financial Regulator has instructed all credit unions to stress test their €7 billion loan books amid growing fears that at least €1.2bn will have to be written off.

The Financial Regulator’s Registrar of Credit Unions James O’Brien raised his concerns in a letter circulated to all credit unions.

In it he said the stress-testing comes against a background where all financial institutions are operating in a challenging economic environment.