The Central Bank of Ireland has announced targeted changes to its regulatory lending framework for credit unions, expanding the scope for house and business lending to members following an evidence-based review and public consultation. The revised framework separates concentration limits for house and business lending and applies a simplified approach across all credit unions. House lending will be capped at 30 percent of total assets and business lending at 15 percent, with the new limits taking effect from 30 September 2025. The Central Bank estimates the change increases total sector lending capacity for house and business lending from EUR 2.9bn to EUR 9.9bn. Additional amendments include limited scope for non-principal residence house lending and the removal of certain underwriting and board reporting requirements. The Central Bank expects credit unions that plan to use the expanded limits to do so in a phased, prudent and sustainable manner, while continuing to build relevant skills, expertise and risk management for these lending activities.
Central Bank of Ireland 2025-08-14
Central Bank of Ireland loosens credit union lending rules by splitting house and business lending caps
The Central Bank of Ireland has revised its regulatory lending framework for credit unions, expanding house and business lending capacities. The new framework sets concentration limits at 30% for house lending and 15% for business lending, effective 30 September 2025, increasing total sector lending capacity from EUR 2.9bn to EUR 9.9bn. Credit unions are expected to adopt these changes prudently, enhancing skills and risk management.