Monday 26 September 2016

Core Credit Union to take over another neighbour

Published 21/07/2015 | 02:30

Glasthule-Dún Laoghaire District Credit Union will now be folded into the bigger Core Credit Union
Glasthule-Dún Laoghaire District Credit Union will now be folded into the bigger Core Credit Union

A South Dublin credit union is to take over another neighbouring lender, in a move that will create an operation with thousands of members.

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Glasthule-Dún Laoghaire District Credit Union will now be folded into the bigger Core Credit Union.

The enlarged entity will have 24,000 members, more than €86m in assets and more than €50m to lend to members, chief executive of Core Michael Byrne said.

Core Credit Union grew out of a previous merger of Dalkey Credit Union with two separate lenders in Ballybrack and Sallynoggin.

Known as the Gold Coast, Dalkey is home to some of the country's most high-profile people.

Residents of the area include U2's Bono, Newstalk broadcaster Pat Kenny and singer Van Morrison.

The credit union office of Glasthule-Dún Laoghaire is to be retained, taking to five the number of offices that Core will have.

Glasthule-Dún Laoghaire has not been allowed to hold an annual general meeting since 2011, as its reserves had fallen below levels demanded by the Central Bank.

This was caused after the credit union's offices were revalued, creating a €2m impairment charge.

Services

Financial support for the takeover has been provided by the Irish League of Credit Unions' rescue fund, the Savings Protection Fund. The takeover was approved by the Central Bank.

Mr Byrne said the enlarged Core Credit Union was about to launch electronic payments.

He added: "Members can avail of a full range of electronic services, such as direct debits, credit transfers and bill payments; both online and from their Apple or Android phones through the credit unions' CUAnywhere app."

Meanwhile, Clonmel and Mullinahone credit unions in Tipperary have merged. This is follows a recent tie-up between Clonmel and Fethard, according to the Credit Union Restructuring Board (ReBo).

And in Cavan, members of Kingscourt, Bailieborough and St Mary's Moynalty credit unions have voted in favour of the three units coming together, to be called Link Credit Union. It will have 16,000 members and €84m in assets.

Up to now some 21 mergers/takeovers have been approved from a total of 50 credit unions.

Another 132 credit unions are engaged in merger projects, according to ReBo.

Irish Independent

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