Sir, – While credit unions cannot solve the housing crisis arising from the demand far outstripping supply, they certainly can help with the provision of mortgages for those fortunate to be able to get a home (“Madness for Central Bank to allow credit unions increase their exposure to housing market”, Business, Opinion, August 21st).
Credit unions are distinctive. They are nobody’s alternative; they are unique and add great value to the lives of many people in Ireland and their communities.
The good news for people is that credit unions have the appetite to do more for more people, they have invested heavily over the last decade to enhance their governance, introducing functions such as risk management, compliance focus, internal auditing of controls and indeed across all areas of their operations. They also have upskilled in terms of boards of directors who provide a professional governance service pro bono. The latter is so important, as credit unions lend to members using the savings of other members, and the safeguarding of these funds is always the overarching principle.
The risks involved in the provision of credit that face all lenders are clearly understood by credit unions, nevertheless, as cooperative financial institutions, they are very aware of the profound responsibility they hold as a credit union in the respective communities that they serve. These communities come together to create a better, fairer provider of financial services – one that cares about the needs of its members.
We have successfully advocated for the modernisation of legislative platform to facilitate the vision where all people in Ireland can access the full range of credit union services, including mortgages, we are seeking similar modernisation of the regulatory framework. This should also allow credit unions, who have expertly trained dedicated staff, to provide more lending to small businesses across all sectors, including agri, in our community and community groups.
The new legislation, the Credit Union (Amendment) Act 2023, sets the foundations for credit unions to do more; we now need prudent and proportionate regulations to enable this to happen. – Yours, etc,
Dr KEVIN JOHNSON,
CEO,
Credit Union Development Association,
Dublin 24.