The High Court has ordered the closure of a credit union in Co Cork.

Berehaven Credit Union in Castletownbere has 3,500 members and a shortfall in its capital requirements of €1.3 million.

The court heard deposits of up to €100,000 will be guaranteed by the government.

The Central Bank said it took this action as it was no longer viable as a stand-alone credit union.

"Berehaven Credit Union had serious financial difficulties due to poor governance, lending practices and a lack of internal controls, which the Central Bank has engaged with the credit union on in recent years in an attempt to find a resolution" it said.

The Bank said it examined "all available options, including a directed transfer to another credit union", but that the financial support required was significantly greater than the estimated cost of liquidation.

"Alternative options to resolve the serious financial difficulties at the credit union were examined but were found not to be feasible" it added.

The appointment of the provisional liquidator does not have any impact on members' savings in any other credit union.

An information document advising members of the implications of the liquidation of Berehaven Credit Union has been published on the Central Bank website.