The first application of its kind was made before the High Court last Friday seeking to appoint a special manager to Newbridge Credit Union. The application comes as Credit Unions around the country are faced with increasing arrears and increased regulation on corporate governance.
The special manager will take over the running of Newbridge Credit Union. In addition, the special manager has been assigned the task of reviewing the Credit Union to ascertain its financial position aswell as providing a special report to the Central Bank within a month.
The special manager will also be charged with developing a plan to restore the institution’s financial position considering all available options and to provide a report to the Central Bank.
Undoubtedly this move by the Bank will be a cause for concern for many Credit Unions who may be experiencing their own difficulties. However each situation is different and with proper regulatory advice and good corporate governance structures Credit Unions can ensure their futures in the Communities they work within are secured.