Thursday 18 January 2018

80 credit unions face collapse reporters

Mounting losses at credit unions have put 80 in danger of closure, a new report has warned.

While CUNA Mutual, which insures 65 Irish credit unions with up to €3bn worth of assets, believes they can be saved if radical changes are made, other financial analysts believe a bailout is necessary.

UCD banking professor Ray Kinsella told RTE’s News at One he anticipated that credit unions would need public assistance as a result of recent stress tests, the results of which will be published soon.

“This assistance is not a bailout in an accepted sense of the world – it’s a bail-in by society,” he said.

But the report by CUNA has predicted that despite the sector’s financial problems, credit unions could sustainably grow by 7.5pc per year.

Irish credit unions have assets of more than €14bn and annual income of €140m.

Credit unions could help fill the gap left by the banking crisis, but will first have to solve their own problems, the report added.

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business