08 February 2021
Update on Share Cap
Following a recent Board meeting the Board of Directors have reduced the level of shares members may have and lodge to their credit union accounts.
The following are effective from the 1st of March 2021.
The maximum shares a member may now hold are €25,000 and members may only lodge a maximum of €1,000 per month on all Adult accounts. With regards to Juvenile accounts there will be a share cap of €10,000 applied and a monthly savings cap of €500 per month also effective from the 1st of March 2021.
Over the past two years, the level of savings in our credit union has increased significantly with a 7% increase recorded in 2020. This amount of savings shows that our members have great confidence in our credit union but this also creates capital level requirement issues. For every €100 saved in the credit union we are required to set aside €10 as part of our capital requirement in maintain theses reserves. As this level of savings continues to grow, the credit union will have to eat into its current reserve levels to fund this capital requirement. This year, we have made a transfer to the Regulatory Reserve in our 2020 accounts, to ensure that we remain above the legislative requirements.
Our apologies if any of the above measures have an impact on our members savings with Templemore Credit Union; however, it is not feasible for us to continue to increase savings that are a cost to the credit union and to a level further beyond any likely demand for loans from members.
For the most part, most of our members will be unaffected by the changes outlined. At all times, our service to members sits at the heart of all our activities and we hope that as the interest rate environment improves over time, we may be in a position to review these measures to accommodate greater savings in the future. If or when the situation changes, we will of course be in contact with members in due course. Existing share balances above this limit can remain in the account, but no new savings can be lodged. Should future withdrawals bring a member balance below €25,000 at any stage, the limit will apply to future lodgements, so that the share balance remains at or below €25,000.
We need members to complete the following steps by 1 March 2021:
- If you intend to leave €25,000 in your account please remember you will be unable to lodge any further funds into your share account until your savings balance is less than €25,000.
- If you have any automated banking transactions being paid to your credit union account, please contact the office to discuss this, as these may need to be re-directed to an alternative location.
Our apologies if any of the above measures have an impact on our members savings with Templemore Credit Union; however, it is not feasible for us to continue to increase savings that are a cost to credit union and to a level further beyond any likely demand for loans from members. If you need to discuss this matter further, we welcome you to contact us directly on 0504/31603 and we will discuss any issues you may have.
We thank you for your support and co-operation on this matter.