Dáil Éireann Debate, Tuesday - 16 October 2012
221. Deputy Tom Fleming asked the Minister for Finance the number of loans that have been sanctioned to small to medium six businesses during the past 12 months; the number of these that were new businesses; the total value of these loans; the number that were refused loans during the same period; and if he will make a statement on the matter. [44781/12]
View answerI assume the Deputy is seeking data from all Irish banks lending to the SME sector. The Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years between 2011 and 2013. Both banks were required to sanction lending, including lending for working capital purposes, of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved their 2011 targets. In terms of the pillar banks, the precise information reported to my Department and the Credit Review Office is commercially sensitive. As such, there is limited specific detail that can be divulged on the tracking of the banks’ performances. However, the Deputy may wish to note that the independent Credit Review Office, as part of its remit, monitors the banks’ progress in relation to the targets and reports on a quarterly basis. Mr. Trethowan’s ninth quarterly report was published on 8 October last, and is available at www.creditreview.ie/docs/NinthQuarterlyReport%20fromJohnTrethowan.pdf. Mr. Trethowan states in the report that “€3.5bn of sanctions for each bank is a very challenging target, however the remaining five months typically show more lending activity and I am of the view that, after a slow start to the year, the targets will be a challenge but still may be achieved". Data provided by the Central Bank indicates that the drawdown of new lending by non-financial SMEs from credit institutions in Ireland was €1.2 billion in the first six months of 2012. Figures for the equivalent period in 2011 show drawdowns of €1.6 billion. Excluding SMEs in the property related sectors these figures show drawdowns of new lending of €866 million in the first six months of 2012. Figures for the equivalent period in 2011 show drawdowns of €1.1 billion. For the Deputy’s information, the relevant statistics for credit made available to small business are accessible at www.centralbank.ie/polstats/stats/cmab/Documents/ie. (Table A.14.1 - Credit Advanced to Irish-Resident Small and Medium Sized Enterprises). The Deputy should note that the lending figures provided by the pillar banks to my Department and those provided by all banks to the Central Bank have different objectives and measure different aspects of lending. These differences are outlined in Mr. Trethowan’s ninth quarterly report.
