Our guiding principle in making this decision was to protect the long-term best interest of all members while ensuring we remain operationally sound.
Saving statistics at Comhar Linn:
Members’ savings during the most recent financial year (2020/21) increased by 8.01% from the prior year (2019/20).
We now hold savings in excess of €252 million in our CU.
We have experienced strong growth in member savings over the past number of years.
This member savings growth, when combined with a very low interest rate environment, has put pressure on our ability to generate sufficient capital to maintain our regulatory requirements set out by the Central Bank of Ireland.
For every €100,000 our members have saved with us, we must allocate €10,000 from our surplus to our reserve. The cost of meeting this Central Bank requirement has resulted in many credit unions introducing limits on the amount of savings members can hold in the credit union.
The credit union is required to maintain a Regulatory Reserve that supports the credit union’s operations, provides a base for future growth and protects against the risk of unforeseen losses. The credit union needs to maintain sufficient reserves to ensure continuity and to protect members’ savings.