Dáil Éireann Debate, Tuesday - 8 April 2014
108. Deputy Pearse Doherty asked the Minister for Finance the reason resolution targets for small and medium-sized enterprise debt at the State-owned banks are not published; and if he will make a statement on the matter. [16262/14]
View answerIn June 2013 the Central Bank set quarterly institution-specific performance targets for covered banks to move distressed SME borrowers onto longer-term forbearance solutions. The targets set reflect the banks' capacity, processes and systems. The Central Bank has informed the officials in my Department that the banks have reported that they have met their required targets to date. This perspective has been reaffirmed by both the IMF and the European Commission who report that the workout of SME arrears is progressing and that imposed targets are being met.
Recently published results from the covered Irish banks indicate that both banks are well advanced in restructuring their SME loan books. Bank of Ireland's most recent published results indicate that they had reached resolution in 90% of distressed SME cases. Similarly the AIB's results indicate a resolution level of approximately 65%. It is also worth noting that defaulted loans for both banks have reduced year-on-year.
The Central Bank do not intend publishing these targets. They are of a commercially sensitive nature.
