The High Court formally appointed liquidators David O'Connor and Jim Hamilton to Charleville Credit Union on Monday following an application from the Central Bank.
The court appointed Mr Hamilton and Mr O'Connor, of Dublin accountants BDO, as provisional liquidators to the credit union last month. Its reserves fell short of the level required by the Central Bank, which regulates financial services here.
A report and an affidavit from Wesley Murphy, the bank's head of resolution, detailed a number of breaches by the credit union of directions from the regulator, and its distressed financial position.
“In the absence of taking this action, it was the Central Bank’s view that there could have been a disorderly failure of the credit union,” the bank said in a statement.
The regulator told the court that it believed it had given Charleville Credit Union all opportunities to address the problem, but the lender had failed to bring its reserves up to the level required.
The Central Bank also confirmed that since the liquidators’ provisional appointment, it has paid 99 per cent of Charleville Credit Union’s 10,900 members the €39.2 million due to them under its deposit guarantee scheme. It began making the payments on October 25th.
"The Central Bank remains fully supportive of the credit union sector in Ireland and is committed to the continued development of a strong and sustainable sector that meets members' changing needs and protects their savings," it added.
