KILKENNY, Ireland–Two credit unions are set to merge here creating one of the largest community lenders in the country.
St Canice’s Credit Union and Bagenalstown Credit Union in Carlow will have combined assets of more than €400m when the merger is complete and will serve
approximately 64,000 members. Members of both CUs have voted in favor of the combination.
According to Eamonn McArdle, chairman of St Canice’s, the merger will create a “stronger, more efficient credit union which can provide enhanced loan and saving facilities.”
“This combination is an extremely positive move for members of our credit unions,” he said. “It makes perfect sense not only from a financial and member-service perspective but also an administrative one in the current regulatory environment.”
The deal is now awaiting approval from Ireland’s Central Bank, which regulates credit unions.
The merged institution will have approximately 13% capital. Once completed, plans call for launching debit cards, agricultural loans, mortgages, online banking and personal loans.
St Canice’s currently offers short-term loans under the “It Makes Sense” initiative that aims to offer an alternative to moneylenders.
Ireland’s credit union have seen consolidation similar to that in the United States. There are now approximately 264 credit unions in the country, down from approximately 400 several years ago.