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ILCU hoping for easing of lending limits

The Irish League of Credit Unions (ILCU) has said that it is “eagerly awaiting” the outcome of a review of lending limits in the sector being conducted by the Central Bank. 

Revised lending regulations were introduced in 2019, to allow greater flexibility for credit unions to diversify their loan books and engage in more long-term lending – including mortgages. 

Speaking at a conference last week, deputy governor Sharon Donnery said that the review, to be published in early December, would propose “targeted – but significant – changes to the lending framework”.

Mortgage lending jumps 

David Malone (ILCU chief executive) said: “We would be hopeful of an easing of mortgage lending limits, further empowering credit unions to support homebuyers”. 

He was speaking as the organisation, which represents 90% of credit unions, reported a total loan book of almost €6 billion for the year to the end of September – an increase of 11% on the previous year. 

Mortgage lending jumped by more than 50% to €560 million, and now represents 10% of total lending in the sector. 

Legislation 

Malone added that legislation passed last year would also being “an exciting opportunity” for credit unions to further develop and expand their services in 2025. 

The Credit Union (Amendment) Act 2023 was aimed at giving the sector more flexibility – including the ability to engage in loan participation and loan syndication, meaning that lending risks can be shared with other credit unions. 

“By leveraging the enhanced provisions of this legislation, credit unions in Ireland can continue to evolve,” said Malone.