Newbridge Credit Union has been taken over by Permanent TSB following an emergency High Court sitting last night.
The troubled financial institution had a special manager appointed in 2012 after it ran into serious financial difficulties.
The Central Bank has said Permanent TSB will assume ownership and management of customer assets and liabilities and will require a nearly 54 million euro bailout to cover loans that will never be repaid.
In a statement, the Central Bank says the transfer ensures all members savings are protected and that all services, including deposit and lending facilities continue to be available to all the credit union members when the facility reopens this morning.
Meanwhile, the Irish League of Credit Unions says Newbridge Credit Union is not affiliated to its group.
In a statement, in which it refers to the transfer to PTSB, the league says it is concerned such a move may not be in the best interests of the members of Newbridge Credit Union. They say they believe it is of critical importance that a credit union service continues to be available to the Newbridge community.
All deposits up to 100,000 euro per person are protected.
Business Journalist Ian Guider explains:
