Credit Unions will be forced to reduce the amount their customers can save under new regulatory proposals from the Central Bank.
A consultation paper from the financial authority proposes a €100,000 cap on members’ savings – half the amount currently permitted.
Credit Unions will also have to maintain borrowing at 25% of their total aggregate savings under the new rules – down from the current threshold of 50%.
New restrictions would also be put on lending under the rules, including a maximum maturity of 25 years and limitations on the types of loans that can be given out.
The Central Bank’s Registrar of Credit Unions Anne-Marie McKiernan said the new regulations would help “foster a safer, stronger credit union sector”.
The authority will now hold a number of consultation meetings in order to gather feedback from the public on the proposed measures, details of which are published on its website.