Dáil Éireann Debate, Thursday - 30 September 2010
21 Deputy Ruairí Quinn asked the Minister for Finance his views on the current lending environment for small and medium enterprises for persons seeking mortgages; and if he will make a statement on the matter. [34038/10]
View answerWith regard to the provision of business credit, both AIB and Bank of Ireland have committed to providing not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011. These plans were reviewed by John Trethowan and the Department and were found to be credible. Both Mr. Trethowan and the Department receive monthly progress reports from the two banks which allow us to ensure they deliver on the strong commitments given in their plans to support viable businesses in all sectors of the economy and in every area of the country.
Both banks insist that there are no constraints on lending bar demand from viable businesses. To back this up, Mr. Trethowan has reported to the Department that both AIB and Bank of Ireland remain open for business and borrowers should use the Credit Review Office if they find this is not so.
As part of the terms of the recapitalisation of AIB and Bank of Ireland, the banks committed to actively promote mortgage lending at competitive rates, with increased transparency on the criteria to be met. In particular AIB and Bank of Ireland committed to providing an additional 30% capacity for mortgage lending to First Time Buyers. IBF statistics for all mainstream mortgage lenders show that overall mortgage lending to FTB fell by 25% in the full year to June 2010 vis-à-vis the previous comparable period. In this market of retrenchment, AIB and Bank of Ireland continue to lend substantial monies and grow market share.
