The Central Bank is preparing to loosen restrictions on credit unions providing home loans, almost a year after the Oireachtas finance committee called for a review of lending limits amid concerns about the viability of the sector.
Ed Sibley, a deputy governor with the Central Bank, said at an event in Trinity College Dublin that credit unions “have significant headroom” for mortgage lending, relative to limits.
However, he added: “Shortly, we will be consulting on ways to allow them loosen that.”
The regulatory authority told credit unions on Thursday that a consultation paper on its proposed changes to the framework will be published “within the coming weeks”, adding that it was “encouraged” by the level of feedback from credit unions during a pre-consultation period on the matter.
The small number of credit unions that have moved into the mortgage market in recent times are bound by a general ban on firms in the sector having more than 15 per cent of their loans at more 10 years to final payment.