Interim Report of the Commission on Credit Unions

[C. Flower]

There have been rumours flying about the state of credit unions, and people generally are experiencing difficulty in getting loans, and pressures to repay outstanding debt to them.

This report is just out.

I don't seem to be able to provide a link. It supplements the Central Banks recommendations on the Credit Unions. The words "stabilisation" and "liquidity" feature, but it stresses that most institutions don't face a liquidity problem at present.

While this interim report and the resulting proposed legislation will
make a significant contribution to the necessary reform and
development of the credit union sector in Ireland, the work of the
Commission is not complete. In the second phase of the
Commission’s work, it will turn its attention to setting out a strategy for
the future evolution of the credit union sector by seeking to define the
role of credit unions in the context of a restructured financial services
sector, proposing a model for modern credit unions and defining the
structure and parameters within which financially viable credit unions
will operate, and examining options for restructuring the credit union
sector, including proposals made by the Central Bank. The
Commission will also examine and make recommendations regarding
options for shared services between credit unions and the leveraging of
appropriate IT infrastructure and management information systems.
Furthermore, the Commission will examine the issue of ‘social lending’
and will consider now credit unions can play a role in providing financial
services and products to meet the needs of low income groups.

Leaks in the last couple of days suggested that 50 CUs were in serious difficulty.

Very many people are unable to repay current Credit Union loans and legal costs in chasing them must also be a problem.


http://www.google.ie/url?sa=t&source...tQXmIXyenogVfg


The Credit Union sector in Ireland has been very important to people on middle and low incomes, particularly in times of recession, in helping them over difficult periods or in lending for education, cars etc.

The sector has enabled people to stay clear, for the most part, from much nastier lenders.

Terms of Reference, and who took part here -

http://www.finance.gov.ie/viewdoc.asp?DocID=6891

[fluffybiscuits]

I applied for a loan for a few days away as I have not been away much in the last two years and I had to jump through hoops. The news on Q102 was discussing it earlier, said that they must have ten per cent in assets of what their capital is or something along those lines. Apparently 27 CU's do not meet the threshold even below 7.5%. There is going to be major changes along the way in how they are dealt with. Some of the implentation plans are ones that were apparently used on the banks. What they are I am not sure but its a sign things are getting tighter and tighter financially for the financial institutions here that didnt lend wrecklessly.