It is just the latest of more than a dozen such mergers this year as the lenders scale up to expand mortgage and business lending.
The coming together of Core Credit Union and Greystones and District Credit Union will create an entity with 53,000 members and combined assets of €230m.
Credit unions will have nearly €10bn available for property and business loans. Photo: Getty
Today’s News in 90 Seconds – Thursday, August 28
At the start of the year, members of Athlone and Castlerea Credit Union and those of St Jarlath’s Credit Union in Tuam, Co Galway, agreed to merge.
That entity will be called West Midlands Credit Union, and have assets of over €440m and 80,000 members, making it one of the biggest in the country.
The merger of Core and Greystones was overwhelmingly backed by the members of both.
We can continue to deliver personal service locally while drawing on the strength of a larger organisation
Officials said the decision paves the way for the creation of a stronger, larger and more resilient credit union. The new entity will have eight local branches.
Core is the larger of the pair and covers areas including Dún Laoghaire, Shankill, Sallynoggin, Ballybrack, Monkstown, Foxrock and Dalkey.
Greystones and District additionally covers Newtownmountkennedy and Kilcoole.
Final regulatory approval from the Central Bank is expected in the coming weeks, with completion by the end of next month.
Greystones and District Credit Union chair John Kenna said: “Our members have sent a clear message that they want a stronger, united credit union that keeps community banking at its heart.
Credit unions will have nearly €10bn available for property and business loans. Photo: Getty
Today’s News in 90 Seconds – Thursday, August 28
“This merger ensures we can continue to deliver personal service locally while drawing on the strength of a larger organisation.”
Core CEO Michael Byrne said the merger will mean the new entity will be in a position to invest in new services, enhance its digital offering and continue to support the local communities it serves.
Core had explored a merger with north Dublin-based Progressive Credit Union earlier this year. A combination of the two would have created a “super” credit union with assets of €370m and close to 100,000 members.
Changes to regulations will allow credit unions to more than triple their mortgage and business lending
In 2017, a proposed merger between Greystones and District and its neighbour, Bray, was rejected by members over fears of the closure of branch offices.
There have been 13 credit union mergers in the last year.
Ten years ago, there were 339 credit unions in Ireland, but that is down to 187, according to Central Bank figures.
Part of the rationale for credit unions to amalgamate to create larger units is so they can expand their mortgage and business lending.
This summer, the Central Bank gave the go-ahead for changes to lending regulations that will allow credit unions to more than triple their current mortgage and business lending.
The new rules apply from next month and will increase the total lending capacity of the sector for mortgage and business loans from €2.9bn to €9.9bn.