Noonan approves ‘in principle’ merger of Naas and Newbridge credit unions

Minister for Finance Michael Noonan has agreed in principle to the merger of the Naas and Newbridge credit unions following a request from the Central Bank.

In January last year the High Court appointed a special manager to the Newbridge office to address its financial position and has been in regular contact with the Central Bank.

Under legislation introduced in 2011, the regulator said its resolution options included the continuity of credit union services within the local Kildare community.

As a result, Central Bank governor Patrick Honohan made a request to the Minister that the two merge.

“The Minister for Finance has confirmed that he is prepared, in principle, to support the proposal,” the regulator said in a statement.

"The proposal remains subject to, amongst other things, the completion of due diligence, negotiation of relevant documentation, Naas Credit Union board approval, regulatory consideration as well as steps required under the 2011 Act including court approval."

It follows a merger proposal set out by Naas Credit Union last April. Further details on how that merger will take place will become clear at a later stage.

Naas Credit Union has total assets in excess of €76 milloin and has more than 22,000 members.