Maynooth Credit Union and the Irish League of Credit Unions are before the High Court this morning as part of their challenge to regulatory directions imposed by the Central Bank.
It’s claimed the directions will severely restrict the ability of credit unions to operate.
Maynooth Credit Union and the ILCU want orders aimed at quashing the regulatory directions of the Central Bank and the Registrar of Credit Unions issued last April.
The directions issued in the last few months relate to regulatory reserves, liquidity and loan limits.
In a statement the Irish League of Credit Unions said it ‘is concerned that the Regulator is overstepping its function... and using its power to effect wide scale and significant consolidation of the sector’.
It states that the credit union sector is very different from the banking sector as it has not needed a state guarantee.
The ILCU also expressed concern that the Central Bank will today apply to have the matter heard in camera - away from the public eye.
The statement says 'it is important that state regulators operate openly, clearly and accountably'.
