Credit unions set to beat the banks

Latest word is that the Irish Bankers' Federation will fail in its attempt to force the Government to treat credit unions like the banks themselves for the purposes of taxation. The banks have long railed against the fact that credit unions are not charged corporation tax.

For their part, the credit unions claim they are not financial institutions but community-based voluntary organisations, which would not be making the surpluses the banks complain of if their 16,000 volunteers were to charge for the work they do for the organisation.

The banks' ire was further fuelled by recent changes in credit union rules, allowing them to lend higher sums to members. The banks appealed to the Competition Directorate of the European Commission, but it appears that, just for once, the David of lenders may outwit the Goliath.