Charleville community hopeful Mallow Credit Union will open branch in town

Move follows decision by Central Bank to appoint liquidators to Charleville branch

Charleville Credit Union

Charleville Credit Union

 

Community leaders in Charleville have expressed hope that a functioning credit union will be operational in the town next week after members of Mallow Credit Union voted in favour of extending their operation into the neighbouring North Cork town.

The move by Mallow Credit Union follows a series of negotiations to fill the void left in Charleville after the decision last month by the Central Bank to appoint provisional liquidators to Charleville Credit Union which has some 12,000 members.

Local Charleville businessman and Fianna Fáil Cllr Ian Doyle said news that Mallow Credit Union members had voted to extend their common bond into Charleville was welcome in the wake of the appointment of liquidators to Charleville Credit Union.

“We have been looking for a functioning credit union here in Charleville since the liquidator was appointed- I would be hoping that Mallow will be able to open here within a week or two and that they will be able to do some deal with the liquidator to take over the existing credit union building.

“The liquidator is provisional until next Monday, November 13th so from then on provided the Central Bank which is the regulator for credit unions is okay with everything, I can’t see why Mallow can’t be in there and up and running from this day week,” he added.

In a statement, Mallow Credit Union said it had learned with sadness of the appointment of provisional liquidator, to Charleville Credit Union but following careful consideration the board of Mallow Credit Union felt incumbent to offer a credit union financial service to people in Charleville.

“Having had the successful experience of merging with three other like-minded credit unions in 2016, Mallow now operates a seven-branch network across our enlarged community, where in excess of 30,000 active members avail of our services,” said Mallow Credit Union in its statement.

According to Mallow Credit Union, it received preliminary permission from the Central Bank to extend its common bond into Charleville so it then sought approval from its members and they voted by “an overwhelming majority”to extend its common bond into Charleville.

Mallow Credit Union Chairman David Browne told members at a special meeting at Springfort Hall last Friday that as soon as the Central Bank formally approves the extension of Mallow’s common bond, it will open its newest branch in Charleville without delay.

Charleville Credit Union closed on October 13th when the Central Bank went to the High Court last Friday to seek the appointment of accountants, David O’Connor and Jim Hamilton of Dublin firm BDO as joint provisional liquidators to Charleville Credit Union.

Charleville Credit Union was not insolvent with savings of €40 million but problems dating back to 2009 when it gave out loans during the property bubble resulting in €15 million in toxic loans meant its reserves fell short of the level required by the Central Bank.