Customers moving accounts from banks to Credit Unions has led to issues in terms of Central Bank Regulations.
That's according to the Manager of the North Midlands Credit union Tom Allen.
The Credit Union group involves branches in north Westmeath and Longford town, and the group recently merged with Lanesboro/Ballyleague Credit union.
Tom Allen says this year has seen membership grown again and while they are delighted to see new people coming to them there is an ongoing issues with savings.
He says they will have to put a cap of €20,000 euro on savings for new members only, because under the regulations on reserves, the Credit Union has to find 10% of the monies deposited.
'We have to provide regulatory reserves against those savings and we have to do that immediately and those are rules that are in place set by the central bank.
We have to have a minimum of 10% on savings as a reserve continually. In the current year, our savings increased by over 31 million so immediately, we had to find reserves of 3 million and that's very difficult to do, especially in a credit union environment.'
