DUBLIN, Ireland–The good news for Ireland’s credit unions—the industry’s average loan-to-assets ratio has started to see a turnaround. The bad news: it’s still at a near-historic low of 28%.
According to the Central Bank, which regulates credit unions in the country, the ratio varies hugely among individual credit unions ranging from 11% to 72%.
According to the report, there are "early indications of an increase in credit risk appetite and an increase in the proportion of larger loans and loans of a longer duration."
Credit union deposits have increased substantially in recent years with total member savings rising from €11.8 billion in 2014 to €15 billion in 2019, with average savings per member in the region of €4,400, the Central Bank said.
The fifth Central Bank report on financial conditions of the credit union sector reports that total sector assets now stand at a record high of €18 billion, according to RTE.
There are now 55 credit unions in Ireland with balance sheets of at least €100 million and which now account for 58% of total CU assets.
Credit unions also have an average reserve ratio of 16.5%.