Ability to pay a dividend and the rate is the key financial performance indicator for the Irish credit union business model. Given a threshold confidence level of a minimum 1% this means that three hundred credit unions are probably experiencing varying degrees of serious financial stress.
Ability to pay a dividend and the rate is the key financial performance indicator for the Irish credit union business model. Given a threshold confidence level of a minimum 1% this means that three hundred credit unions are probably experiencing varying degrees of serious financial stress.
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Over 300 are likely to pay less than 1% with 196 paying less than 0.50% of which 82 will pay nothing at all.
Ability to pay a dividend and the rate is the key financial performance indicator for the Irish credit union business model. Given a threshold confidence level of a minimum 1% this means that three hundred credit unions are probably experiencing varying degrees of serious financial stress.
"Mr Credit Union" has questioned the safety of credit union deposits with Irish covered banks
@wizardr I too have questioned why 10% and note the WOCCU benchmark is 15%. Risk weighted capital adequacy is not a feature of the Irish prudential regime but is in the US, Canada and Australia. Credit unions here can only generate capital from retained earnings. Some elswhere have managed to tap capital markets.
@county are you suggesting that credit union dividends are equivalent to dividends declared on private equity? The implication is credit union shares are a form of risk capital which is what of course they were at one time.
I am merely suggesting that by viewing the ability of an institution to pay or not to pay a dividend is a blinkered view on that institutions overall strength and by using the AIB's dividend venture as an example.
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