Minister for Finance Brian Cowen has said it is important for people to be prudent in approaching investments.
Mr Cowen was speaking at an Irish League of Credit Unions Conference in Dublin following the release of figures yesterday which showed that total borrowings of current and would-be home owners topped €100 billion for the first time ever last month.
The minister said the continuing strong level growth was a reflection of activity in the economy.
Mr Cowen told the conference he had requested the Advisory Committee to review the restrictions under the Credit Union Act on the proportions of longer-term lending by credit unions.
"I am very aware of the high importance that the movement assigns to securing progress on this issue," he said.
"I am conscious of the strong view held by credit unions that increased longer-term lending could make a substantial contribution to alleviating the issue of surplus investment funds."
Mr said the proposed review was being undertaken to look into the impact of the limits on the risk profile of the credit unions' loan book. From a public policy perspective, Mr Cowen said his priority was to have legal certainty over the protection of savers in credit unions.
Earlier Anne O'Byrne, president of the Irish League of Credit Unions (ILCU), warned credit unions must accept a process of change if the movement is to develop.
She called for inclusive consultation and genuine debate of policy issues to ensure its successful development.
"Changes are inevitable in how credit unions do business - not why we do business," Ms O'Byrne told the 1,400 delegates from 530 credit unions gathered for the consultative general meeting.
"The commitment of credit unions to provide access to credit and other financial services in the interests of their members on a 'not-for-profit' basis will continue in line with the philosophy of the operating principles of credit unions.
"Credit unions both independently and co-operatively now need to plan how they can provide improved services to meet their members needs."
The meeting was taking place against the backdrop of the most successful year ever for Irish credit unions, with savings at an all-time high of €12.6 billion.
A copy of the union's study of the half a billion euro it gives in social finance loans was given to delegates including Finance Minister Brian Cowen.
Ms O'Byrne said rationalisation was a crucial issue, and she also highlighted the infrastructure needs of the credit unions. "Solutions must be grasped within the next two years," she said.
The meeting heard consultations have been taking place in Northern Ireland as well as the Republic on the necessary changes in legislation.
The changes will include allowing credit unions to lend to their members on a longer term basis.
Discussions have been taking place with the Finance Department and Registrars of Credit Unions in both regions on the restructuring of its Savings Protection Scheme. The €93 million fund put in place to safeguard credit unions and the savings of credit union members has worked successfully for 20-years.
"The ILCU itself is clear that the SPS should be a unifying beacon of confidence in the credit union movement on this whole island," she said.
"The regulatory environment must recognise and be supportive of the unique role of credit unions and their invaluable contribution to the well being of society throughout the island of Ireland."
Independent research recently revealed the public regards credit unions as the most trustworthy, helpful, customer-focused and community-concerned financial service providers. Highlighting the uniqueness of the credit unions, Ms O'Byrne said the concepts of social responsibility must be embraced more going forward.
"Our uniqueness relates to the focus we place on members so that everything we do should and must be designed to help members improve their social and economic situation. Our philosophy and operating principles make credit unions unique, vibrant financial co-operative institutions," she said.