@24601 @cavanboy @bbari1
2. The Reserve Ratio does stop Credit Unions from taking money in on shares or deposits. There is no doubting that and it sets off a slow burning
fuse down the line where Credit Unions now have less than 25% lent out. This were severe restrictions on Credit Unions but there have been relatively few compared to the €500m that was er mentioned above.
@24601 @cavanboy @bbari1
1. Its the central banks fault: In essence we were informed by no less than the Central Bank of a dire issue that a bail out of €500m was needed. We hjave heard no more about this fake news than we have heard about Donald Trump bringing jobs back. An eerie silence.
2. The Reserve Ratio does stop Credit Unions from taking money in on shares or deposits. There is no doubting that and it sets off a slow burning
fuse down the line where Credit Unions now have less than 25% lent out. This were severe restrictions on Credit Unions but there have been relatively few compared to the €500m that was er mentioned above.
3. 85 Credit Unions were doing mortgages of sorts according to Revenue as a year TRS was provided fro them.
4, This nonsense that mortgages are above the Credit Unions shoe size is often peddled. Now that the Law Society have altered the home loan process many of the risks in not getting title are resolved. Credit under writing is pretty straight forward. So much so that even the average can do it. I do not buy into the fake news saga.
5. Buy to Lets - the issue here was that the State grabbed USC and PRSI and Tax from the only asset a family might have. Generally speaking if there were relatively low LTVs there were few issues. To close this market off to Credit Unions (all of them) is simp;ly another overreaction and in any event not all in the Central Bank actually agreed with it.
6. The last Report on CU AML was a stand out because the CBI never raised the question of inadequate checks on the main business. Why would they do that when the Sector is responsible for 22% in the only DoJ report I could find.
7. Being the most trusted Brand should mean that they should be able to take my shares to at least €100k/
8 . The Central Bank do not take criticism well but we know they read these.
9. Why are CU Accounts not available as opposed to having to locate them at each Credit Union? Fundamental Analyst might go through them
and the overcooked Regulations.
Can you explain this to me - why would a business look to increase non-performing assets. I work in banking (not Irish domestic) and we went through the excercise of reducing expensive non-performing client deposits about 5 or 6 years ago and we are pretty analytical about what we take now.
If the problem for a Credit Union is the lack of performing lending in relation to the deposits, then the solution is to increase or reduce deposits. Not the ratio
2. The Reserve Ratio does stop Credit Unions from taking money in on shares or deposits. There is no doubting that and it sets off a slow burning
fuse down the line where Credit Unions now have less than 25% lent out.
non-performing client deposits
expensive non-performing client deposits
What is a non-performing deposit? (Excuse my ignorance)
What is a non-performing deposit? (Excuse my ignorance)
I really don't know where to start with thisI really don't know where to start with this.
1. What has this got to do with the price of spuds? So what if the 500m wasn't needed? What exactly does this "prove"? (Hint: it's definitely not what you think it does)
2. This is complete and utter nonsense. The reserve requirement has absolutely no bearing on loans to assets. It doesn't "stop" them taking in shares/deposit, it just makes them ponder whether they should be taking them in when they can do nothing productive with them. Are you really arguing that the reserve requirement limits lending?
3. And your point is? I could be doing mortgages out of the back of my van, it doesn't say anything about whether I should be or whether I am doing them in a compliant manner that makes money. Plenty of credit unions gave money to developers in the Celtic Tiger years. By your logic this fact somehow proves that they should be financings developers.
4. You clearly don't understand credit risk to any meaningful degree. Either that or you're purposely ignoring the risks associated with loan concentration and the huge issues arising for mortgage lenders in the wake of the last downturn.
5. Good God.
6. What? Apart from this making no sense, a number of credit unions have been subject to enforcement action on AML. The 2015 Report highlighted endless weaknesses.
7. They can take your shares to at least 100k. That's literally the law. They may choose not to because they can't do anything with them.
8. See point 5.
9. See point 5.
NOTE: Stop slagging off posters.
A deposit where I make no return on the increase in assets.
I really don't know where to start with this
1. So the fact that a bogus report suggesting a rescue of €500m which ushered in the most Stalinist of controls is no big deal?
1A - Who produced the fake numbers to trigger this?
2. I said the taking of shares (increases liabilities AND assets) is limited the Ratio - FACT Eventually at the margin you could require additional assets to earn 10% which is not possible. In other words the build up of reserves means they are consolidated over years. When you get close to 10% ratio you must stop new savings or shares/ FACT
3.It is simply outrageous to say the back of the van. In facf they have better systems than some banks
4. I wasn't commenting on Loan Concentration but you have so what relevance has the Common Bond got today except a restriction on trade. Why are you not expanding the common bond? If you have 60% LTV a nuclear bomb wont take it out.
5. Another highly prejudicial answer
6. Let us call this out. There was little commentary on how CUs dealt with money, You would have thought this was the main issue in AML or that identification was an issue. This Report was silent on the main matters meaning that the Central Bank was satisfied with what it examined. It just does not actually say i The biggest offence it did raise was 'Club and Society' accounts. Anything bad it stated it. Kept silent on anything good. Read the Report again
7. They cannot take shares if they breach 10% ratio. Fact. So many of them the limit of €100k is irrelevant.
8. I hope you are not one of them
9. Why would the accounts not be on CBI website?
NOTE: Stop slagging off posters.
9. Why would the accounts not be on CBI website?
You should make a submission to the Central Bank to require all Credit Unions to post their accounts on their website.
I found looking at the individual credit unions interesting.
Hi again Coyote
I have used those aggregate figures as of March 2019 for what I did with individual credit unions
View attachment 5046
In fact, they can hand back more cash as the net loans figure is probably only about €4 billion as some of those loans are backed by shares.
Now they have reserves of €3 billion on total assets of €6 billion or 50%.
They can still increase their lending by 20%.
The Central Bank would be able to sleep at night and apply a much less rigorous supervisory regime.
If an individual Credit Union has reserves of 50%, I wouldn't care if they allocated 20% of their total loans to mortgages. And nor should the Central Bank.
Brendan
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