Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

We have all heard these objections. However, the facts do not bear them out. On the Deputy's point that section 35 is not working, under section 35, 30% of a loan book can be outstanding for more than five years. The credit unions have, on average, only 11% outstanding. Also, 10% of a loan book can be outstanding for more than ten years, but the credit unions have only 2% outstanding. This suggests to me that the credit unions are operating well within the headroom provided by section 35.

With regard to the impact of lending restrictions on the ability of credit unions to lend, I have also been informed by the Registrar of the Credit Unions that the data available indicates that there is no material difference in the average loan-to-asset ratios of credit unions with and credit unions without restrictions. Also, where individual lending restrictions are imposed, this data shows that the majority of credit unions are not lending up to the lending restriction amount, with the majority of loans granted being lower than the loan levels. According to the registrar, while it might impinge on individual cases, it certainly does not impose restrictions on the general work of the credit unions.

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