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 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.