DUBLIN, Ireland–Mortgage lending at credit unions rose by 10% to €518 million in the three months ending in June, according to the latest quarterly report from the Irish League of Credit Unions.
Mortgages now represent nearly 10% of the total loan portfolio of credit unions.
“The ILCU attributes this growth to strong demand, spurred by competitive rates and personalized service with quick turnaround times,” Business Plus reported.
ILCU CEO David Malone told the publication credit unions have provided much-needed competition and customer choice in a highly concentrated mortgage market, but he expressed concern over "arbitrary crisis-era regulations" that limit the amount credit unions can lend for mortgages, according to Business Plus.
"These limits are actively prohibiting competition and are not in the best interests of financial stability or enhanced consumer protection. It is imperative that targeted proportionate changes are made to the existing regulatory limits by the Central Bank," Malone told the publication.
Ireland’s Central Bank regulates credit unions in the country.
‘Clear Demand’
Malone told Business Plus that with the clear demand for mortgages and credit union services, adjusting these lending limits would offer immediate benefits to aspiring homeowners across Ireland.
The trade group, which represents 90% of active credit unions in the Republic of Ireland, reported its 13th consecutive quarter of sustained lending growth, with a cumulative increase of 12.8% over the past year.
Inside the Numbers
According to ILCU and Business Plus:
- Ireland’s credit unions now hold a market-leading 53% share of the unsecured personal lending market, with arrears at an all-time low of 2.5%.
- The assets of ILCU-affiliated credit unions reached €18.3 billion by the end of June 2024, while savings in these credit unions rose to €15.3 billion.
- In total, over 110,000 new loans were issued in the quarter, marking a 21% increase from the previous quarter, with an average of more than 1,200 loans issued daily.
- Annual loan growth of 12.8% has pushed the total loan portfolio to more than €5.74 billion, the highest level in more than 15 years.
- There has also been significant growth in digital services usage among credit union members. Over the past year, members conducted 14.1 million digital transactions, totaling €2.3 billion, marking a 30% increase in digital transactions compared to the previous year and a fourfold increase over the last five years
The full report can be found here.