The Central Bank of Ireland (CBI) has published regulations (the Credit Union Act 1997 (Regulatory Requirements) (Amendment) Regulations 2020 (the “Regulations”)), to come into operation in January 2020 which will permit credit unions which meet certain criteria to undertake increased longer term home and business lending. Our January 2019 briefing (available here) looked at the proposals. The Regulations reflect the consultation process undertaken by the CBI and the various changes introduced will permit credit unions with the financial strength, competence and capability the flexibility to offer increased home mortgage and business lending subject to three overall tier limits:
- A combined concentration limit for house and business loans of 7.5% of total assets for all credit unions;
- A 10% limit for credit unions having assets in excess of €50 million; and
- A 15% limit for credit unions having assets in excess of €100 million.