Sir, – I noted the recent article concerning credit unions and mortgage provision by John McManus (“Madness for Central Bank to allow credit unions increase their exposure to housing market”, Business, Opinion & Analysis, August 21st).
While the piece makes several salient points regarding the property sector in general, the article fails to recognise the evolution of credit unions over the last decade. Credit unions are not only well-established and highly capitalised but also prudently managed and intensively supervised. Credit unions are the most reputable organisation in the country for the second consecutive year, according to the 2024 RepTrak study, and have ranked in the top position in the CXI Customer Experience Awards for an unprecedented nine years in a row.
Denying credit unions the ability to provide mortgages would stifle competition and limit consumer choice. Credit unions have the competence, controls and capabilities to compete in this market.
The mortgage market has changed dramatically over the last number of years and, since the exit of Ulster Bank and KBC, is dominated by the three pillar banks.
I’m back at work months and my baby still doesn’t have a full-time childcare place
Simon Harris: ‘I can’t give the whole manifesto away, but should early childhood be part of the education system in a more formal way?’
Peter Hanly was one of Ireland’s most recognisable actors. Then he vanished
Pay-day, pay-day: how to stop your current account from slipping into the red before your salary lands
With almost 3.2 million members across the country, existing and new credit union members deserve and, in many cases, demand the right to avail of mortgage services from prudent and trusted lenders that are fulfilling all statutory requirements.
Credit unions are not new market entrants and their growth within the mortgage space is in keeping with international best practice, where most mature credit union movements worldwide include mortgage lending as a key segment of their loan book. Ireland is an outlier in this regard.
Credit unions are not for profit and as such are seeking the opportunity to offer mortgages to serve their communities and not drive profit.
As a movement we respect the existing lending limits; however, they are too onerous and no longer reflect the needs of a growing Irish society that demands choice. If these limits were eased, the same prudent rigour that underpins all credit union lending would be applied to mortgage lending.
Finally, it should be noted that there is a broader imperative to easing the lending limits. The US-based International Credit Union Regulators’ Network recently undertook a peer review of how the Central Bank regulates credit unions in Ireland. It highlighted that the welcome changes to credit union legislation (Credit Union Amendment Act) would be nullified if the mortgage restrictions were not changed.
This cannot be allowed to happen as credit unions have a pivotal role to play in supporting communities across Ireland through their quality services and products. – Yours, etc,
MARK BEIRNE,
CEO,
Savvi Credit Union,
Dublin 2.