Central Bank of Ireland announces targeted changes to credit union lending regulations

The Central Bank of Ireland has today (14 August 2025) announced targeted but significant changes to the regulatory lending framework for credit unions (PDF 1.01MB), which will allow the sector increased scope to provide house and business lending to their members.

The changes, which follow an evidence-based review of credit union lending and a public consultation process, will ensure that the lending framework remains appropriate for the future.

Some of the main changes include:

• The lending concentration limits for house lending and business lending will be separated.
• House lending will have a limit of 30 per cent of total assets and business lending will have a limit of 15 per cent of total assets. These limits will be available to all credit unions representing a simplified approach to the current framework.
• These new lending limits – which will apply from 30 September 2025 – will increase the total lending capacity of the sector for house and business lending from €2.9bn to €9.9bn. This is considerably higher available capacity for credit unions to lend to members - but we view this as forward looking, future proofing the limits and providing certainty to credit unions in their business planning.
• Other changes to the lending regulations include providing limited scope for non-principle residence house lending and removal of certain underwriting and board reporting requirements.

Speaking on publication Deputy Governor, Financial Regulation, Mary-Elizabeth McMunn said: “Following a significant review which included engagement with stakeholders and a public consultation process, today we are confirming important targeted changes to the lending framework for credit unions, which will significantly increase the potential of the sector to provide house and business loans to their members.

“While considerable capacity remained for further lending within the previous lending limits, the updated framework aims to allow credit unions the ability to sustainably develop into the future – within the appropriate guardrails the limits provide and in the long term interests of their members.

“While the measures will provide more flexibility and capacity to engage in house and business lending, it is our expectation that credit unions planning to avail of the changes will do so in a phased, prudent, and sustainable manner. We also expect credit unions to continue to develop the skills, expertise and risk management necessary for this type of lending. For our part at the Central Bank, we will continue to support credit unions through constructive and open engagement, and our proportionate risk-based supervisory approach.

“Coming alongside other recent changes to the legislative and regulatory framework for credit unions, most notably the Credit Union (Amendment) Act 2023, the credit union sector has been provided with significant opportunities to further collaborate and develop.

“However, as we have said before, while these changes are important, enabling regulations on their own are not enough. To address current and future challenges, credit unions must now take the opportunities provided to them in the regulatory framework so that they can continue to play their important role in delivering for their members, communities and the financial sector.”