Killorglin credit union members reassured after transfer

The Central Bank has reassured members of Killorglin Credit Union that their funds are protected and that all services will continue to be available to them following its transfer to Tralee Credit Union.

The High Court yesterday approved the transfer. The Central Bank had sought it because it felt Killorglin Credit Union was no longer viable as a standalone entity.

“The transfer was undertaken to protect members’ savings and ensure continued access to credit union services within the community,” the Central Bank said.

Pat Duffy, manager, Killorglin Credit Union, said its entire board “wholeheartedly” supported the immediate transfer.

The combination makes Tralee Credit Union the largest community-based credit union in Munster, with assets of €170m and 41,000 members.

Last month, the Credit Union Restructuring Board (ReBo) said more than 140 credit unions were working with it to execute a merger strategy. Up to last week, it had facilitated eight restructurings for 20 institutions.

ReBo has drawn down just €3.5m, or less than 1.5%, of a €250m Credit Union Fund set up by the Government to provide stabilisation support to a credit union which holds an inadequate regulatory reserve; to fund operational costs; or to help a credit union’s voluntary restructuring efforts.