A total €40.3m lent over 603 loans, which had become ‘seriously distressed’, lead in part to the appointment of the Special Manager by the Central Bank to Newbridge Credit Union in January 2012, it has emerged.
Twenty six of the 603 loans, classed as ‘Special Examination Loans’ by the now defunct Newbridge Credit Union, worth €14.3 million, were identified as ‘business development mortage type loans’.
These 26 loans equated to an average loan size of €550,000.
At the time it was identified that these special examination loans were ‘seriously distressed and required approximately €24.6 million of loan provisions’.
Other concerns, included the lack of a consistent loan application process, failures to properly ascertain borrowers’ financial positions, and ability to repay loans, were listed by the Central Bank prior to the making of the Special Manager’s Order.
Details of these were included in the recent Central Bank’s application for NCU’s transfer order to PTSB.
Meanwhile as at October 7, 2013 NCU had 15 members with savings in excess of €100,00 with a combined total of €2.6 million in savings.
The Deposit Guarantee Regulations would have covered €100,000 of these 15 accounts, totaling €1.5 million leaving a balance of €1.1 million that would not have been covered if NCU had not transfered to PTSB.