Dáil Éireann Debate, Wednesday - 18 September 2013
211. Deputy Nicky McFadden asked the Minister for Finance if a system of auditing banks is in place to ensure that they are delivering on lending promises and targets; the body that oversees such an audit; and if he will make a statement on the matter. [37901/13]
View answerThe Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Each bank was required to sanction lending of at least €3 billion in 2011, €3.5 billion in 2012 and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved the targets for 2011 and 2012.
One of the primary functions of the Credit Review Office (CRO) is to review the lending policies of the pillar banks, having regard to the SME lending targets set by Government as part of the recapitalisation exercise, and to report to myself on the progress of these policies. To this end, AIB and Bank of Ireland are required to submit their lending plans to my Department and the CRO at the beginning of each year, outlining how they intend to achieve their lending targets. Both banks also submit monthly returns which outline progress in terms of achieving the targets, as well as providing a breakdown of lending by sector and region. The banks also meet my Department and the CRO on a quarterly basis to discuss progress. The monthly management meetings with the two banks also provide a forum for the issue of SME lending to be raised by my Department.
In addition, the Credit Reviewer produces a quarterly report which comments on the progress of the banks in meeting their lending targets. The CRO twelfth quarterly report is due for publication in the coming weeks.
I have met the Boards of each of the banks in which the State has a shareholding three times since the start of this year. At these meetings, I have emphasised the importance of access to credit for SMEs and the need for an adequate flow of finance to be available to viable small businesses in Ireland.
