In a statement, the Irish League of Credit Unions said credit unions would like to be in a position where they could fill the gap left by the departures of Ulster Bank and KBC from the Irish market and start lending more mortgages.
Mortgage and SME lending is limited to a combined maximum of 7.5% of total assets for most credit unions. If they have SME lending then the number of mortgages they can offer reduces accordingly within the strict 7.5% lending limit. "In order for credit unions to become community banks, and to really engage in the mortgage market, the ILCU is asking Minister Fleming to address the imbalance caused by the restrictive regulatory lending regime in his soon to be published review of the policy framework within which Credit Unions operate," Mr Malone said.