Killarney and Kenmare Credit Unions to merge

Kenmare and Killarney Credit Unions are to merge in the coming weeks. The merger was prompted by concerns over new reserve rate rules imposed on the sector by the Central Bank. Under the rules credit unions must have a reserve ratio of 10%. The merger is subject to regulatory approval which it’s hoped will be completed on 19th of May. The Kenmare Credit Union building was valued at €1.3 million and to comply with financial reporting standards, it had to be written down to €300,000 as a result its reserves fell to 6.72%. The minimum reserve ratio is the ratio that the Central Bank insists a credit union must have if it is to continue trading. Following this the board of Kenmare Credit Union initiated a process to find a suitable merger partner with Killarney being the preferred option. Kenmare Credit Union has stated that the move was a pre-emptive action by its board and that it was not forced to merge by the Central Bank. There is no danger to members’  savings and no impact on staff at either credit union. Pat Delaney is chairman of Killarney Credit Union. [audio_player src=”http://media.radiokerry.ie/mediamanager/embed/audio/38746/medium/”] Kenmare Credit Union said it hopes the move will lead to the development of services such as debit cards and electronic banking in time.