The management of lending risk in Irish community credit unions

Show simple item record O'Sullivan, Patrick McCarthy, Olive Byrne, Noreen 2018-01-25T11:50:47Z 2018-01-25T11:50:47Z 2017-12
dc.identifier.citation O'Sullivan, P., McCarthy, O. and Byrne, N. (2017) 'The Management Of Lending Risk In Irish Community Credit Unions', Journal of Co-operative Accounting and Reporting, 5(1), pp. 79-101. en
dc.identifier.volume 5 en
dc.identifier.issued 1 en
dc.identifier.startpage 79 en
dc.identifier.endpage 101 en
dc.identifier.issn 19279590
dc.description.abstract Traditional loan assessment carried out by credit unions has been centred on the members’ history of savings and loan repayment record with their credit union. This has been in keeping with the member-owned, voluntary, self-help co-operative principles of credit unions in providing financial services to their members. In more recent times, Irish credit unions have been challenged to adopt a more formal approach to managing lending risk management in the context of a changed economic and regulatory environment. This paper examines lending risk management and its associated governance in four community credit unions in Ireland during two points in time. The first is between 2008 and 2012, a period marked by economic recession and traditional loan assessment. It then examines the revised approach to lending risk management adopted by credit unions post 2012 following a series of legislative and regulatory change for credit unions where more formal risk management processes and enhanced governance were introduced. It was found that lending by credit unions which maintained prudent management of loan risk outperformed lending by credit unions which took a less prudent approach. In addition, the study demonstrates how the application of risk management principles to the lending process can bring a level of clarity and a structure to loan underwriting, thereby enhancing the quality of the process. Good governance principles can positively influence the lending process and should provide the basis for a sound lending environment. en
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.publisher Saint Mary's University Centre of Excellence in Accounting and Reporting for Co-operatives (CEARC) en
dc.rights © 2017 Saint Mary’s University, CEARC; The Authors en
dc.subject Credit union en
dc.subject Lending risk en
dc.subject Governance en
dc.subject Co-operative principles en
dc.subject Risk management en
dc.subject Irish credit union movement en
dc.subject Irish credit unions en
dc.title The management of lending risk in Irish community credit unions en
dc.type Article (peer-reviewed) en
dc.internal.authorcontactother Olive McCarthy, Food Business & Development, University College Cork, Cork, Ireland. +353-21-490-3000 Email: en
dc.internal.availability Full text available en 2018-01-25T10:30:18Z
dc.description.version Published Version en
dc.internal.rssid 417776446
dc.description.status Peer reviewed en
dc.identifier.journaltitle Journal of Co-operative Accounting and Reporting en
dc.internal.copyrightchecked Yes en
dc.internal.licenseacceptance Yes en
dc.internal.IRISemailaddress en

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