FINE Gael Senator Maria Byrne believes that the role of credit unions is now even more important as Ulster Bank and KBC have withdrawn from the Irish market.
Senator Byrne, the Fine Gael Seanad Spokesperson for Finance, welcomed the recent growth of credit union mortgage lending in Ireland, with mortgage lending up 26.6 per cent year on year to March 2023 with a total mortgage book of €364million.
“The average credit union mortgage is approximately €100,000. However, it is crucial that more credit unions nationwide can extend their loan book to mortgages, including more substantial mortgages, and become a competitive force in the Irish mortgage market for their members. SME lending has also grown 12.4 per cent year on year to the end of March 2023,” the Limerick politician pointed out.
Senator Byrne maintains that the Credit Union (Amendment) Bill will provide a significant step forward in securing a viable future for credit unions across the country and will help them to better serve their 3.5 million members and achieve their ambitions for future growth in the provision of financial services.
Minister of State at the Department of Finance, Jennifer Carroll MacNeill, who is bringing the Bill through the Oireachtas for Government said: “Credit unions are central to Irish life. They are social, community-based organisations providing vital financial services to individual members, families, and businesses. There are more than 200 credit unions, with over 400 branches, across the State. They hold about €17billion in savings and €5.5billion in loans.
Minister Carroll MacNeill added: “I am delighted to have worked in partnership with colleagues in Government and the credit union sector in developing this reforming piece of legislation. Importantly, the Bill will proactively protect the volunteerism of credit unions – the very foundation of the origins of the movement in Ireland over 60 years ago – by acknowledging and recognising the role of the sector in developing a volunteer-led co-operative movement”
Senator Byrne now wants credit union members to be able to access the full suite of the financial services available.
“Every member should be able to open a credit union current account and access a mortgage product. That is not happening at present, but this bill will help the credit union movement to meet this objective if they so wish,” she concluded.
