Brendan Smith
Ceist:192. Deputy Brendan Smith asked the Tánaiste and Minister for Finance how he has engaged with the Central Bank to review credit union lending limits; and if he will make a statement on the matter. [73045/25]
Amharc ar fhreagraThursday, 18 December 2025
Ceisteanna (192)
Freagraí scríofa
The Central Bank of Ireland is mandated to set regulations for credit unions in a number of areas including lending limits. Regulations on lending limits are prescribed by the Central Bank of Ireland under the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016.
In December 2024, the Central Bank of Ireland published Consultation Paper 159 on Proposed Changes to the Credit Union Lending Regulations (CP159) which sought views on proposals for targeted changes to house lending and business lending credit union lending regulations. I would like to note that there are no limits on personal lending which continues to comprise the vast majority of credit union lending (approximately 86% as at end September 2025).
The amending regulations commenced on 30 September 2025. The amendments allow the sector to advance a maximum of €6.75 billion in house lending and €3.375 billion in business lending, based on sector total assets of €22.5 billion as of 30 September 2025.
The main changes to the lending limits can be summarised as follows:
• Increasing the lending limit for house lending to 30% of total assets;
• Increasing the lending limit for business lending to 15% of total assets;
• Decoupling of the concentration limits for house lending and business lending; and
• Removing the various tiers based on asset sizes.
The previous Ministers for Finance and the Ministers of State with responsibility for credit unions engaged on multiple occasions with the Central Bank of Ireland prior to, and during consultation on the lending limits. I welcome the amended regulations as it will allow credit unions to compete more effectively in the mortgage and business lending market.
The amendment of these regulations reflects the competence and capability of credit unions to grow their loan books in a prudent manner, and to futureproof their offering to support homeowners and businesses. Both I and the Minister of State with responsibility for credit unions strongly encourage credit unions to maximise the opportunities for lending growth that the lending limits now provide while maintaining appropriate credit and risk policies.