A new study of credit unions in Ireland is critical of their level of accountability and of the amount of information they provide to members. The study by a research team from Queens University Belfast and the University of Ulster concluded that improving the quality of information for members was unlikely without external intervention.

The leader of the research team, Prof Noel Hyndman, said: "Most credit union managers articulated a desire to improve reporting to members but there was little evidence to indicate that significant changes had occurred in the recent past." He added that if Irish credit unions were to remain faithful to their ideal of serving their members, not only greater financial accountability but other measures allowing members to assess better the wider performance of their credit union would be required.

Speaking to The Irish Times, Prof Hyndman said many credit unions did not disclose the type of basic information that would be expected from financial institutions of their scale. He said 60 per cent of credit unions did not have any specific accounting policy on bad debts and almost 20 per cent of credit unions did not even disclose their level of bad debts.

"Irish credit unions have grown to be significant financial institutions and this places pressure on them to ensure that their reporting mechanisms keep pace with their overall development," he said.

Prof Hyndman said that to maintain confidence in the movement, improvements in accountability were essential. "We are not saying that this has led to any fraud, but it can't be good for the development of credit unions. We would call for more guidance for credit unions if we want this sector to develop," he said. He added that, with impetus from the Irish League of Credit Unions, the Institute of Chartered Accountants and the regulators, "accountability can be strengthened, not only for the benefit of members but for the benefit of credit unions as significant financial institutions in Ireland".