Michael McGrath
Question:91. Deputy Michael McGrath asked the Minister for Finance the number of credit unions currently subject to restrictions on their lending activities; and if he will make a statement on the matter. [10895/13]
View answerThursday, 28 February 2013
Questions (91)
Written answers
I have been informed by the Registrar of Credit Unions that it has been necessary to put lending restrictions in place in credit unions where there are regulatory concerns about the operation of these individual credit unions and the resultant risk to members’ savings. The number of lending restrictions is a reflection of the Registrar of Credit Union’s concerns about lending practices in the sector. There are currently about 58% of all credit unions subject to lending restrictions. Almost all credit unions with a lending restriction in place have a maximum individual loan size restriction. Of the credit unions with lending restrictions, over 71% can lend €20,000 or more to an individual member, which is a sizeable amount and should cover most circumstances.
Fewer than 2.5% of credit unions are restricted to issuing loans of less than €10,000 to an individual member, and fewer than 1% of credit unions are restricted to issuing loans of less than €5,000 per member. These are the cases where the Registrar of Credit Unions has the more significant concerns in terms of risk to members’ savings.
The individual credit union lending restrictions currently in place are reviewed on a regular basis to determine whether they are still set at appropriate levels.