The Irish League of Credit Unions has confirmed it is in discussions to provide home loans to its members.

Fianna Fáil Spokesperson on Finance, Michael McGrath, said the credit union is well placed to provide mortgages to customers seeking to buy new homes.

He said: "In doing so, Credit Unions would be providing badly needed competition for the banks who continue to charge customers well above European norms for home loans.

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"The lending restrictions, imposed by the Central Bank, have resulted in the Credit Union sector having a vast amount of cash which cannot be lent on to members.

"The Central Bank needs to find ways of allowing the Credit Unions to put that money to work in the economy and the provision of mortgage finance by Credit Unions is one such avenue that should be pursued. Last year, the Irish League of Credit Unions said its member Credit Unions had €5 billion available to lend."

(CD/JP)