Pressure on Central Bank to ease strict limits on credit unions in mortgage market
Finance Minister Jack Chambers is among those calling on the regulator to relax the tough limits it has imposed on each credit union.
Credit unions already offer the cheapest mortgage rates in the market, but many end up having to turn away customers because they quickly exhaust what they are allowed to lend to members.
The Irish League of Credit Unions (ILCU) has in the past said its members were “handcuffed” by the restrictive lending limits for mortgages prescribed by the Central Bank.
Now it has emerged that Mr Chambers has joined calls from a prestigious international network of credit union regulators in calling for the Central Bank here to allow credit unions to expand this type of lending.
The US-based International Credit Union Regulators’ Network (Icurn) carried out a peer review of how the Irish Central Bank regulates credit unions here.
It concluded that recent changes to credit union legislation would be nullified if the mortgage restrictions are not changed.
The Icurn…
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