Credit Unions to make mortgages available to all customers

Ballincollig Credit Union in Cork. Picture: Denis Minihane.

All credit union members will be able to access mortgages, business loans and current accounts under a significant expansion of the sector.

It is hoped that Government legislation, which will allow greater collaboration between branches to generate economies of scale, will pass by the end of the year.

The Bill will also allow smaller credit unions not offering some services to refer members to other branches that do provide mortgages or SME loans.

Minister of State Jennifer Carroll MacNeill said she wants to help credit unions expand and adapt to complete with both the pillar banks and new online offerings, but at the same time retain the organisation's community focus.

"I believe all credit union members, irrespective of where they live, should have access to the full services of community banking. All members should, for example, be able to open a credit union current account, apply for a business load and should be able to access a mortgage product," Ms Carroll MacNeill said.

"That is not happening at present and the Bill will help the credit union movement to meet this objective if they so wish."

The Credit Union (Amendment) Bill 2022, which has now passed the committee stage, includes two key amendments.

The first will allow credit unions to take part in both loan participation and loan syndication.

The amendment will also allow credit unions to refer members to other branches in all circumstances.