DUBLIN, Ireland–Two of Ireland’s largest credit unions are proposing to merge to create what in this country is being called a “super credit union.” 

Progressive Credit Union and Drogheda Credit Union are in talks to merge to create a CU with assets of €615 million. It would have 120,000 members if the merger is approved by the Central Bank, which regulates credit unions in Ireland. 

“Both the government and the Central Bank have a policy of encouraging credit unions to merge to create financially stronger units,” the Independent reported. “It comes as credit unions have joined forces to take on the banks on mortgages.”

The two credit unions are to soon jointly offer mortgages as credit unions in Ireland expand more deeply into mortgage lending. 

“Some larger credit unions already offer mortgages, but each has a different interest rate. The new product, Credit Union Mortgage, means there will be a standardized national mortgage, with a set interest rate,” the Independent reported. 

About the CUs

If the merger goes ahead, it will create the largest credit union in Ireland in terms of asset size. Drogheda has 60,000 members and €385 million in assets. It has five offices – two in Drogheda, one in east Meath, one in Dunleer and one in Trim.

Progressive has around 60,000 members and over €230m in assets. 

The Independent reported the Central Bank has indicated it could take up to a year for the transfer to be finalized.

The report noted that Drogheda Credit Union has also entered into merger talks with nearby Slane Credit Union, which has 3,600 members, with assets of around €19.5 million..

A Series of Mergers

The Independent noted Progressive CU grew out of a series of mergers between the lenders in Skerries, Donabate, Balbriggan, Howth-Sutton, River Valley and Rathingle, Baldoyle-Portmarnock, Clontarf, East Wall, and Fairview. It operates also in Dublin city and covers Ballymun.