The Central Bank have issued new regulations regarding new lending rules for Credit Unions. These will come into effect in January 2020.
As a result of the new regulations, the existing lending maturity limits which cap the percentage of their lending for periods of greater than five and ten years will be removed. These maturity limits will be replaced by new concentration limits on a tiered basis, for home mortgage and business loans, expressed as a percentage of total assets.
This means credit unions with the financial strength, competence and capability, will have the flexibility to undertake increased longer term lending. This includes home mortgage and business lending.
“The changes being announced today follow a comprehensive review of the lending framework for credit unions. This forms part of our commitment to ensuring a responsive regulatory framework. It is important that the lending framework remains appropriate for credit unions taking account of their risk management, capabilities, expertise and financial resilience,” said Patrick Casey, Registrar for Credit Unions.
You can read the Central Bank’s press release here.