MEP Ciaran Mullooly has welcomed proposed changes to Credit Union lending rules as a “game-changer” for addressing Ireland’s housing crisis and boosting local communities.
Following a recent meeting with representatives of the Credit Union movement in Brussels, he highlighted the potential for these reforms to unlock billions in new loans, providing families with affordable mortgages and supporting small businesses. “The housing market is under immense pressure,” MEP Mullooly said.
“These changes could position Credit Unions as a real alternative to the big banks, offering fairer mortgage rates while reinvesting directly into our communities.”
The Credit Union movement has been a cornerstone of Irish society since the 1950s, founded by visionaries like Nora Herlihy, Seán Forde, and Séamus P. MacEoin. They recognised the devastating impact of poverty, unemployment, and moneylending on families and sought to create a cooperative system that would empower people to take control of their finances.
The first Credit Union was established in 1958 on Donore Avenue in Dublin. Today, there are over 200 Credit Unions across Ireland, serving more than 3 million members and managing assets worth over €18 billion. Built on an ethos of mutuality, volunteerism, and self-help, Credit Unions remain not-for-profit institutions that reinvest surplus income back into their communities. “Credit Unions have always been about people helping people,” MEP Mullooly said. “They are trusted institutions that put their members first, offering ethical financial services that benefit local communities.”
Currently, Credit Unions hold less than 0.7% of Ireland’s mortgage market due to restrictive regulations. However, under proposed changes by the Central Bank, they could allocate up to 30% of their assets—around €6 billion—for mortgage lending and up to 10% (€2 billion ) for business loans. This would allow them to offer over 18,000 new mortgages at competitive rates as low as 2.9%, similar to those already provided by Youghal Credit Union. “This isn’t just about mortgages,” MEP Mullooly explained. “It’s about creating real competition in the market and giving people access to affordable housing finance while ensuring that surplus income is reinvested locally.”
In addition to higher lending limits, Credit Unions are calling for broader reforms to modernise their operations. These include simplified compliance rules, stronger anti-fraud measures such as a national fraud database and PPSN checks on loan applications, and greater flexibility to expand their range of financial services.
“These reforms will allow Credit Unions to grow sustainably while continuing to support local businesses and foster financial inclusion,” MEP Mullooly said.
“Unlike traditional banks, they reinvest profits directly into the communities they serve.” The proposed changes would also enhance Credit Unions’ ability to lend to small businesses, providing a significant boost to local economies while ensuring long-term financial stability for these member-owned institutions.
“For decades, Credit Unions have been there when families needed them most,” MEP Mullooly added. “Now it’s time to give them the tools they need so they can continue working for us and our communities.”
