Naas Credit Union submitted a proposal to the Central Bank to merge with Newbridge Credit Union last April.
A statement released today by the Central Bank amid rumours of the merger between the two financial institutions confirmed that the proposal to combine the two was made in April 2013.
“Since the appointment of the Special Manager to Newbridge Credit Union by the High Court on 13 January 2012, the Central Bank has been actively engaged with the Special Manager to address the credit union’s financial position,” it reads.
“In considering options for Newbridge Credit Union, the Central Bank is guided by the purposes of the Central Bank’s resolution legislation (the “2011 Act”), including securing the continuity of credit union services within the local community of Newbridge.
“A process involving the examination of possible credit union combinations was undertaken, which resulted in an approach being made to a number of credit unions including Naas Credit Union.
“In April 2013, Naas Credit Union submitted a proposal to the Central Bank. The proposal set out the basis upon which Naas Credit Union would be prepared to combine with Newbridge Credit Union. In response to a request from the Governor of the Central Bank, the Minister for Finance has confirmed that he is prepared, in principle, to support the proposal. 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.”
“The proposal from Naas Credit Union envisages retaining and developing credit union services available to members in both Naas and Newbridge.
“Further details will be provided when the process is at a more advanced stage.“Credit union members are reminded that eligible deposits of credit union members, up to €100,000 per member, are fully guaranteed by the statutory Deposit Guarantee Scheme.”