Dáil Éireann Debate, Thursday - 21 July 2016
118. Deputy Michael McGrath asked the Minister for Finance the number of credit unions currently operating under lending restrictions; the number of credit unions with restrictions on lending to individuals and aggregate monthly lending in bands of €10,000; and if he will make a statement on the matter. [23879/16]
View answerI have been informed by the Central Bank that 26% of credit unions are operating under lending restrictions.
Almost all credit unions with a lending restriction in place have a maximum individual loan size restriction. In the majority of cases, the maximum individual loan size is in excess of €10,000 as detailed in the following table.
|
Lending Restriction on Individual Loans |
Number of Credit Unions |
|
10,000 |
8 |
|
>10,000 and 20,000 |
36 |
|
>20,000 and 30,000 |
25 |
|
>30,000 and 40,000 |
3 |
|
>40,000 and 50,000 |
3 |
|
>50,000 and 60,000 |
- |
|
>60,000 and 70,000 |
- |
|
>70,000 and 80,000 |
- |
|
>80,000 and 90,000 |
- |
|
>90,000 and 100,000 |
1 |
|
Total |
76 |
There are 13 credit unions that have a monthly maximum lending restriction imposed.
In February 2015 the Central Bank commenced a lending restriction review initiative, whereby credit unions subject to a lending restriction that are satisfied they have made the necessary improvements and have embedded these improvements in robust risk sensitive lending practices, could apply for a review of their lending restriction. The closing date for receipt of applications to review lending restrictions under this initiative was 30 September 2015.
Currently approximately 26% of credit unions have a lending restriction compared with 52% at the start of the review process.
