Damien English (Meath West, Fine Gael)
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260. To ask the Minister for Finance for an update on credit union mortgage-lending in the State; the plans he has to assist credit unions in reaching an increased number of first-time home buyers with their mortgage offering; and if he will make a statement on the matter. [29821/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputy for his question.

As of March 2023 the total credit union mortgage book amounted to approximately €364 million. The average credit union mortgage is approximately €100,000. Mortgage lending in the sector is up 26.6% year on year to March 2023 and this growth demonstrates that there is demand for credit union mortgages.

Credit union mortgage lending is fragmented with 20 mainly industrial credit unions accounting for approximately 75% of mortgage lending. Credit unions with over €50 million in assets and reserves greater than 5% can notify the Central Bank that they intend to use a higher 10% combined mortgage and SME lending limit.

I believe that credit unions can help the entire mortgage market and fulfil a significant role nationally through increased collaboration and the creation of a compelling mortgage product offering.

Such a product could benefit from standardisation of rates and nationwide advertising.

I am currently aware that a number of stakeholders are currently working on a mortgage Credit Union Service Organisation (CUSO). The future strength of the credit union movement is dependent on its ability to work together to develop new and compelling products and services for its members.

Finally, enabling provisions contained in the Credit Union (Amendment) Bill, such as allowing for member referral and the establishment of corporate credit unions, will further help credit unions provide a product for first-time home buyers.

Damien English (Meath West, Fine Gael)
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261. To ask the Minister for Finance for an update on credit union SME lending in the State; the plans he has to assist credit unions in reaching an increased number of SMEs with their lending offering; and if he will make a statement on the matter. [29822/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputy for his question.

This Government is encouraged by the growth in credit union SME lending to date. In total, SME lending has grown 12.4 % year on year to the end of March 2023.

Credit unions with over €50 million in assets and reserves greater than 5% can notify the Central Bank that they intend to use a 10% combined SME and mortgage lending limit.

A number of enabling provisions in the Credit Union (Amendment) Bill, such as allowing for member referral and the establishment of corporate credit unions, will help future-proof and strengthen the sector for the years ahead. The Bill is currently progressing through the Oireachtas.

The introduction of corporate credit unions and member referral, should support greater collaboration between credit unions, facilitating a sharing of resources and greater access to funding for SMEs. While member referral is not mandatory, it is a new option for making additional services available to members who can't access a service in their credit union.