DUBLIN, Ireland—Credit unions across Ireland could soon be allowed to invest their members’ funds in social housing projects.
The Central Bank of Ireland, which regulates credit unions in the country, announced a review of regulations, saying it was considering whether to facilitate further classes of investment by credit unions in areas such as social housing, Co-operative News reported.
Under existing regulations, credit unions can invest in a range of specified investment classes, which includes government securities, deposits and bank bonds and collective investment schemes made up of these instruments. Investments in these classes of investments are subject to specified maturity and concentration limits, noted Co-operative News.
“We will review the regulations to consider whether it is appropriate and prudent to facilitate investment by credit unions in other investments – such as social housing –by broadening the permitted investment classes in the regulations,” Elaine Byrne, deputy registrar of credit unions, said during the annual general meeting of the Credit Union Development Association.
She said credit unions continue to face pressures from the low level of total loans to assets, currently at 27%, and the low-interest environment.