Credit union merger talks are at an ‘advanced stage’

A MERGER between the Charleville and Clonmel credit unions is becoming an increasingly likely prospect and could happen within a matter of weeks.

It is understood that negotiations between both boards are at an advanced stage, despite the fact that it was not included on the agenda for a board meeting at the Clonmel branch this week.

Clonmel Credit Union manager Paul Davey said that talks with Charleville were taking place and if a merger were to happen it would be in the best interests of members and staff at both branches. “Discussions are ongoing, but have not got to the stage where boards can go to the Central Bank for a transfer of engagements,” he said.

THE mooted merger of the Charleville and Clonmel Credit Unions could take place within a matter of weeks if both boards and the Central Bank reach agreement on the issue.

Should the merger take place, it will strengthen the position of both branches in terms of introducing new products to challenge banks such as debit cards.

While the issue was not on that agenda at this week’s board meeting of Clonmel Credit Union, it is understood that talks between both branches about a merger are at an advanced stage.

Paul Davey, the manager of Clonmel Credit Union, said that were a merger to happen it would be undertaken in the best interests of members and staff at both branches.

“Discussions with Charleville are ongoing but have not got to the stage where boards can go to the Central Bank and apply for a transfer of engagements,” said Mr Davey.

“There are a number of fences to be jumped in the process. The final arbiter will be the two boards and the Central Bank. If a merger were to take place we would be looking to enhance the branch of the benefit of all the membership,” he added.

It is understood that a combined Credit Union would have assets of around €218 million and a membership of approximately 40,000, a figure that Mr Davey said would provide a viable base of operations.

“There is a fundamental need for Credit Unions to grow in size in order to both have a financial base and to allow branches introduce new products such as debit cards,” said Mr Davey.

He said Clonmel had gone through two mergers in recent times, one that took a matter of weeks to complete while the other took a number of months to go through.

“Any merger would have to go through a due diligence process with the Central Bank. The issue is with both boards and nothing will happen until they and the Central Bank are satisfied that everything is in order,” he added.

Mr Davey said the 50-mile distance between the two branches would not be a problem.

“This would not be unusual in any way. Many branches already have offices in other counties,” he said.

The Corkman was unable to get a comment from a Charleville Credit Union spokesperson at time of going to press.