Rathangan Credit Union is to merge with Mountmellick Credit Union in Co Laois.
Members of Rathangan CU have been sent a booklet outlining the proposed “transfer of engagements” - a voluntary process which will see all assets, liabilities and undertakings of Rathangan CU transferred to the Mountmellick CU.
An accompanying letter states that the boards of both credit unions have voted in favour of the amalgamation and it “arises from the belief that our members can be better served together.”
It adds “we consider it an ideal opportunity to grow and develop our services to members locally” and “we are confident (this) will strengthen our position to be the most trusted and respected financial services provider for our members.”
All Rathangan staff members who are not retiring will transfer to Mountmellick.
The document also refers to a declining loan book, current income levels and a regulatory reserve (the amount of money required to be held by a credit union) of less than 10% (of total assets).
“The directors continue to develop and monitor the CU’s current activities and are actively addressing its long term strategic plan,” the booklet states.
Members are also being told that the main financial risks arising from the activities of the CU are credit risk, liquidity risk, interest rate risk and continuous compliance with regulatory and legislative requirements.
Up to the end of May it was recording a profit of just under €21,000.
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