A new report has recommended the restructuring of credit unions as the tough economic climate has hit their performance.
It added that some are finding it difficult to replenish their reserves ahead of new credit union legislation which is due to be published in June.
The report also recommends the strengthening of the regulatory framework of credit unions, including more effective governance.
The report stated that of the 403 credit unions that submitted returns, 51 had total realised reserves less than 10pc of assets, while 25 could be considered ''seriously undercapitalised''.
However, despite the financial crisis and the challenges it poses, average liquidity has remained high and stood at 47.38pc in December 2011.
The loan-to-asset ratio in the sector was 40.76% in 2011.
The report said restructuring said should be achieved on a voluntary, incentivised and time-bound basis.
The Commission predicted that a ''significant funding requirement'' will be needed for this but the amount is not yet known.