Cork and Limerick credit unions reveal €128m merger

Four credit unions in Cork and Limerick with combined assets of €128 million are to merge in a bid to cut costs.

The tie-up will see Mallow, Millstreet and Buttevant and Doneraile credit unions in Cork join forces with the Dromcollogher credit union in Limerick.

All four unions, which combined have seven branch offices and more than 28,000 members, have been in discussion about the possibility of coming together for the past year.

The merger will create one of the largest credit unions in the State, with savings of up to €125 million and a loan book of €32 million.

The unions said the amalgamated entity will be a stronger and more robust credit union, which can offer savings and loan products at more competitive and sustainable rates.

They also assured members would see no change in the day-to-day operations of the unions.

The boards of all four credit unions involved expect the legal requirements relating to the "Transfer of Engagements" to be completed in the coming weeks. Tomás O'Neill, chief executive of Mallow Credit Union, said: "With regulatory requirements becoming more stringent, larger credit unions have the ability to grow and offer stability and security to members whose requirements are evolving on a constant basis."

The number of credit unions has been in decline since the crash, largely due to amalgamations. The consolidation process could see the number of active credit unions in the State fall to about 300, down from a pre-crash high of 425.