- Central Bank releases second report on the financial condition of the credit union sector
- Growth in new lending and a decrease in the level of loan arrears are both notable but pressure remains on credit union business model
- Low Loan to Asset Ratio and the low interest rate environment continue to present challenges for credit unions
The Central Bank of Ireland today publishes its second report on the financial condition of credit unions in Ireland. This is part of the Central Bank’s commitment to communicate openly and regularly on matters relating to the credit union sector.
The report notes that total assets in the sector have increased by €3.1bn between 2012 and 2017 and currently stand at €16.8bn. During the same period, members’ savings have increased by €2.3bn. Following the decline in the loan to asset ratio from 37 per cent in 2012 to 27 per cent in 2015, there is now evidence of stabilisation, with the ratio remaining at 27 per cent since 2015. Loan to asset ratio
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