A phased review of the assets of credit unions was initiated two years ago due to concerns about the stability of the credit union sector, the Registry of Credit Unions (RCU) has told the High Court.

Mark Forde, a senior regulator in the RCU, said Maynooth Credit Union (MCU) was among a number of credit unions selected in 2012 for review because of "serious concerns" about its position. It was anticipated 150 credit unions would be reviewed by the end of this year, he said.

He denied Maynooth's claim that the issuing of regulatory directions to it in April and July 2013, arising from the review carried out by consultancy firm Deloitte, amounted to discrimination or failed to take into account its position as a community credit union.

Methodology
He also rejected claims the Deloitte report concerning MCU was "irrational" or had used a flawed methodology.

He said the directions, including a requirement to have €1.25 million reserves, were expedient in the interest of the orderly and proper regulation of MCU’s business and to protect the savings of its members.

An affidavit from Mr Forde was among documents read yesterday in the continuing hearing of the challenge by MCU and the Irish League of Credit Unions to the directions issued by the RCU to MCU and four other credit unions arising from the reviews.

The hearing continues.