Irish credit union movement is world's strongest
Irish credit unions have the highest proportion of savers and borrowers of any credit union movement in the world, it emerged tonight.
Around 40% of Irish savers have credit union accounts and 54% of borrowers obtain finance through their credit union.
The Irish League of Credit Unions (ILCU) said this indicated the success of the credit union movement since it was founded by 13 gardaí in Dublin Castle in 1964.
“It shows an extraordinary penetration rate. In fact, that would the highest penetration rate of any credit union in the world and there are over 70 such movements,” said chief executive Liam O’Dwyer.
The ILCU’s 2004 annual report published today showed there were 2.9 million credit union members.
The value of savings rose by 15% to around €11bn and the value of loans rose by 9.5% to €5.6bn.
Mr O’Dwyer said credit unions were making loans ranging from €200 to €500,000, with the average amount being around €5,000.
“They have managed to straddle all aspects of Irish society and that is equally important. The reason we’ve done so well is that we’re perceived as a social co-operative and not for profit.”
Around 9,500 volunteers run the movement with the help of 1,600 full time staff and 1,200 part time staff.
However, Mr O’Dwyer warned that while credit unions were restricted by law in what they could lend, other financial institutions were encouraging consumers to take up chequebook mortgages.
