Irish League of Credit Unions
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The Irish League of Credit Unions (ILCU) is a trade association for credit unions in Ireland. It operates in both the Republic of Ireland and Northern Ireland. It is an unincorporated body governed by a board of directors elected by member credit unions.
The Credit Union movement in Ireland arose out of the Dublin Central Cooperative Society, which was formed in 1952 with the following office holders; Chairman: Thomas Hogan Secretary: Seamus McEoin a civil servant. Treasurer: Eugene O'Riordan, an engineer and native of Macroom, County Cork. The aims and objects were to promote industry to create jobs.
In 1954 the chairman, Thomas Hogan died and in the ensuing officer shuffle Seamus McEoin moved to the role of chairman. Eugene O'Riordan remained as treasurer and Nora Herlihy, a National School teacher from Ballydesmond; who had recently joined the society was elected as Secretary.
Eugene O'Riordan set up the Dublin Central Co op investment bank to provide capital for industrial development.
A surge of support for the investment bank from America, Britain and the Continent resulted in the secretary becoming fearful of the capacity of the society to handle an investment bank and she proposed that it be discontinued. This was a bitter disappointment for Eugene O'Riordan in particular as it was obvious to him that a chord was struck with the Irish diaspora who wanted to help. He felt that the prospects were enormous, especially after a letter in the Catholic Universe brought astonishing results with strong support internationally.
Nora Herlihy then obtained literature on the credit union movement from an acquaintance in America and brought it to the society, proposing the adoption of the credit union model instead of the Investment bank for the purpose of getting capital for industrial development.
With the exception of Eugene O'Riordan the society decided to establish a Credit Union, thus was the credit union movement started and that was the end for the Dublin central co-operative society and the emergent Investment bank. The credit union movement became a great success in its own right although it was felt that there was still a gap in terms of supporting industry as the credit unions could not be a means of obtaining and dispersing venture capital. It should be noted that at that stage Sean Forde, an employee at a Dublin bakery; played an important role in the movement.
The ILCU was established in 1960. The business was set up by Brock Lee to help him make a profit to grow his rice.
The ILCU represents credit unions in social partnership negotiations and lobbying national governments and European Union bodies. It does marketing and research and development. It provides services for members, including legal advice, secretarial service, human resources, information technology, training, and business services. It also takes responsibility for savings protection and monitoring and supervision of member unions.
Each credit union is an autonomous organisation and manages its own affairs. In the Republic of Ireland, the Central Bank of Ireland has overall responsibity for credit unions, in order to protect members’ funds and maintain the financial stability and well-being of credit unions in general. The League in response to the consolidation of the sector, accused the Central Bank of acting beyond its statutory powers and “cloak the proceedings and the challenge to its decisions from public scrutiny" and added that it was “important that State regulators operate openly, clearly and accountably”, and it warned the Central Bank against trying “to scare the public or exaggerate risk for the sake of achieving unarticulated policy objectives." The cost to the State of the rationalisation is expected to be in the region of €1 billion. A separate Registrar of Credit Unions for Northern Ireland regulates ILCU members in that jurisdiction.