27 credit unions are ‘seriously undercapitalised’

THE country’s 408 credit unions hold over €12 billion in savings on behalf of 2.9 million members but the Commission on Credit Unions has found that a worrying 27 unions are “seriously undercapitalised” and total arrears are over €1bn.

It is not the case that much of the sector is on the edge of collapse — of the 408 credit unions, 30 have assets in excess of €100m and four have assets in excess of €200m.

However, there is a concern that more than half (216) have assets less than €20m and almost three-quarters (299) have assets less than €40m.