# Health check of your CU



## Frank (24 Jul 2014)

Hi all 

Probably been asked before but,

How do you see the state of the local CU?

Frank


----------



## pudds (24 Jul 2014)

It was suggested on Drivetime this evening that you should check two things,

1. Did they pay a dividend last year. - If they did not, it's a bad sign.
2. Are there any loan restrictions placed on them.

If answer to 1 is yes, then worry,

but don't forget all deposits up to 100k are guaranteed.

The girl on drivetime giving the report also said that the CB is looking at 100 c.u's and she can't understand why with post offices closing down they don't merge some c.u's with P.O's. as would make perfect sense.


----------



## Brendan Burgess (24 Jul 2014)

I don't know if they will tell you whether there are restrictions or not. 

Ask to see the latest set of accounts.  Ask when was the last AGM.  If, as with Berehaven, they have not had an AGM since 2010, then you should be worried. 

The lack of a dividend is another indicator, but not totally reliable. 

In any event, you should not have over €100k in a CU.


----------



## Branz (24 Jul 2014)

pudds said:


> It was suggested on Drivetime this evening that you should check two things,
> 
> 1. Did they pay a dividend last year.
> 2. Are there any loan restrictions placed on them.
> ...



I have just listened to this piece
[broken link removed]
Starts at 11:33
What she said was: if no divi paid and there were loan restrictions then one should be worried if u have deposits over 100k


----------



## Sunny (25 Jul 2014)

Brendan Burgess said:


> I don't know if they will tell you whether there are restrictions or not.
> 
> Ask to see the latest set of accounts. Ask when was the last AGM. If, as with Berehaven, they have not had an AGM since 2010, then you should be worried.
> 
> ...


 
Didn't the Central Bank tell them not to hold an AGM which is something I would be curious about. 

I did hear someone say that people should look at their CU building. If it's a big fancy building built or bought during the Tiger years, then people should be worried! I can see the logic.

The best security is that no-one should have over €100k in a credit union and the Central Bank should be telling Credit Unions to return deposits over this amount to people (many of them elderly who simply don't trust banks or have total faith in the credit union movement).


----------



## Brendan Burgess (25 Jul 2014)

Sunny said:


> the Central Bank should be telling Credit Unions to return deposits over this amount to people (many of them elderly who simply don't trust banks or have total faith in the credit union movement).



A very good idea.  The ILCU should call on people to do this. 

Brendan


----------



## Brendan Burgess (25 Jul 2014)

Hi Sunny

On reading the Berehaven report, I note this

[FONT=&quot]9[/FONT][FONT=&quot].            From February 2010, RCU has issued in total nine Regulatory Directions to BCU: two directed BCU to seek solvency support to restore its RRR to 10%; one directed BCU not to proceed with holding an AGM; and a further six directions curtailed the business activities of BCU principally by limiting its lending, limiting the investments it could make, prohibiting further expenditure on fixed assets and *capping the maximum savings any member could have in BCU. *[/FONT]


----------



## Sunny (25 Jul 2014)

Brendan Burgess said:


> Hi Sunny
> 
> On reading the Berehaven report, I note this
> 
> [FONT=&quot]9[/FONT][FONT=&quot]. From February 2010, RCU has issued in total nine Regulatory Directions to BCU: two directed BCU to seek solvency support to restore its RRR to 10%; one directed BCU not to proceed with holding an AGM; and a further six directions curtailed the business activities of BCU principally by limiting its lending, limiting the investments it could make, prohibiting further expenditure on fixed assets and *capping the maximum savings any member could have in BCU. *[/FONT]


 
That's good to hear. To be fair to the Central Bank, it is a very orderly wind up. Haven't heard of anyone screaming to the media about how unfair it is so they had obviously been preparing for this eventuality.


----------

