New Credit Union Lending Limits Come into Effect
- Foilsithe:
- An t-eolas is déanaí:
The Minister for Finance, Paschal Donohoe TD, and Minister of State with responsibility for Financial Services, Credit Unions, and Insurance Robert Troy TD have today (30/09/2025) welcomed changes to the Central Bank Of Ireland regulatory lending limits to the credit union lending framework.
The Central Bank of Ireland has brought into effect a set of regulatory changes which will increase the home and business lending capacity of credit unions by €6.6 billion.
The key changes are:
- Increasing the lending limit for home loans to 30% of total assets;
- Increasing the lending limit for business loans to 15% of total assets; and
- Decoupling the concentration limits for home and business lending;
- Removing the need for a business plan for business loans of more than €25,000.
Previously, credit unions could lend a combined 15% of total assets in either home or business lending, a maximum of just over €3 billion.
Based on total assets of €22.05 billion, the sector now has the capacity to advance up to €6.6 billion in home loans and €3.3 billion in business loans. This reflects the competence and capability of credit unions, while giving them the space to compete more effectively and offer choice to consumers in the mortgage and SME markets.
Minister for Finance, Paschal Donohoe TD, commented:
“I welcome today’s changes to the Central Bank’s credit union lending framework. The new framework will allow credit unions to expand and diversify their loan books and provide more of the services their members need.”
Minister of State for Credit Unions, Robert Troy TD, welcomed the news saying:
“The changes coming into effect today will help to diversify the Irish lending market. Allowing credit unions to increase their home and business lending will help to promote competition and deliver better outcomes for consumers.
Credit unions have a unique national footprint right around the country, and access to community based financial services continues to be hugely important. That presence makes them ideally placed to offer choice and access to financial products for people across the country.”
ENDS
Notes to Editor
On 15 August 2025 the Central Bank of Ireland published an amended set of lending regulations which is the result of a review of the changes introduced to the lending framework in 2020.
The purpose of the review was to assess and analyse the impact of changes introduced in 2020 and to inform on the need for any future change.
The output of this review was published in December 2024 and included a report detailing proposals for targeted changes to the credit union lending regulations and a consultation on the proposed changes (CP159).
The submissions to the consultation were broadly supportive of the proposed changes to the lending regulations with some changes requested on business lending limits and the definition of “house loan” to include second home purchases.
On foot of this consultation, the Central Bank of Ireland amended their proposed regulations and today, 30 September, the amended regulations come into effect.
The main changes are outlined below:
Based on sector Total Assets of €22.05 billion, the changes will allow the sector to advance €6.61 billion in house lending and €3.30 billion in business lending.
- Lending limit for home loans increased to 30% of total assets,
- Lending limit for business loans increased to 15% of total assets,
- Decoupling of the concentration limits for house lending and business lending,
- Removal of the various tiers based on asset sizes,
- Removal of the need for a business plan for business loans of more than €25,000,
- Increase in the related parties’ exempt exposures threshold amount to €10,000,
- Introduction of a 2.5% sublimit within the 30% house lending limit for second home purchases,
- Technical amendments relating to Approved Housing Body definitions to maintain credit unions’ ability to lend to members that are AHBs
For the avoidance of doubt there are no such regulatory restrictions regarding the provision of unsecured personal lending less than 10 years duration.