TWO CREDIT UNIONS in North Dublin are engaged in talks over a proposed merger on foot of expectations that a number of the lending institutions across the country will amalgamate in the coming years.

Malahide Credit Union has confirmed to TheJournal.ie that it is engaged with Howth Credit Union in what the Irish Independent reported yesterday was likely to become the first merger after a commission recommended a series of mergers across the sector.

Last week, the Commission on Credit Unions recommended a restructuring of the sector in light of the economic challenges credit unions face after the financial crisis.

There are some 404 credit unions across the country with around 2.9 million members. The proposed merger of Malahide and Howth would be structured in way that would see the former take over the latter but both branches would remain open, the Irish Independent reports.

The government appointed Commission on Credit Unions also proposed that some credit unions particularly hit by the financial crisis should be granted funding to ensure they have adequate capital and to upgrade their systems.

Read: Report calls for restructuring of credit union sector