It's likely some smaller credit unions will be merged as part of restructuring in the sector.

And the Credit Union Development Association AGM has heard many are still struggling to tackle arrears.

The registrar of Credit Unions Sharon Donnery has told delegates at today's annual general meeting that Credit Unions have experienced a 40 percent drop in total interest income since a peak of 600 million euro in 2009.

Loan books held by Credit Unions are continuing to fall with 47 percent of them having arrears of more than 30 percent of their loan book - the average sector arrears at the end of September last were slightly above 19%, with total loans worth around 4.5 billion.

Ms Donnery says in light of the current situation, some restructuring within the sector is essential, if it is to be sustainable for the future. This means some credit unions may be merged, leading to some dilution of local control.