For the bones of a decade, Drumcondra Credit Union was an ailing institution. Then in July, the regulator moved to pull the plug on operations after attempts to merge the north Dublin lender with another credit union came unstuck. The Central Bank applied to the High Court to wind up the business stating that its closure was in the public interest. While Drumcondra was technically solvent, it was in severe financial distress. Its reserves, at 5.4 per cent of total assets, were well below the regulatory 10 per cent minimum that credit unions are required to hold. Drumcondra had been…

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