I propose to take Questions Nos. 155 and 168 together.
As part of the 2011 recapitalisation exercise, the Government imposed SME lending targets on AIB and Bank of Ireland 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 last year and €4 billion in 2013 for new or increased credit facilities, including working capital, to SMEs. Both banks have achieved their lending targets.
The credit review process remains available to any SME whose credit has been reduced or withdrawn by AIB or Bank of Ireland as well as when credit is refused by them. I would strongly advise any SME whose credit is reduced or withdrawn to avail of the services of the Credit Review Office.
Action Plan for Jobs 2014 contains a range of actions to encourage access to credit for SMEs and enhance the measurement and reporting by the banks of their lending to the sector. These include:
- Work with KfW and the German Ministry of Finance to develop an initiative that will improve funding mechanisms for SMEs.
- Detailed data from AIB and Bank of Ireland will be collated and examined on a monthly basis ensuring a more informed understanding of the SME bank lending environment with a particular focus on new lending.
- The SME State Bodies Group will be rolling out a comprehensive communications strategy to ensure that SMEs are aware of the State supports for which they may be eligible, which may include supports for working capital purposes.
In addition, the SME Funding Consultation Committee, chaired by the Department of Finance, provides a forum for consultation with stakeholders around Government policy regarding the provision of credit to SMEs.
As regards the unsuccessful applications that have succeeded on appeal, the Credit Reviewer's thirteenth report , published on 24 March, contained the table below which sets out the relevant information.
AIB
|
Appeals
WIP
|
Borrower
Appeals Upheld
|
Borrower
Appeals Declined
|
Total
Internal
Appeals
|
BoI
|
Appeals
WIP
|
Borrower
Appeals Upheld
|
Borrower
Appeals Declined
|
Total
Internal
Appeals
|
2010
|
|
22
|
45
|
67
|
|
|
6
|
83
|
89
|
2011
|
|
68
|
85
|
153
|
|
|
12
|
167
|
179
|
2012
|
|
93
|
191
|
284
|
|
|
7
|
101
|
108
|
2013
|
|
79
|
173
|
252
|
|
|
45
|
95
|
140
|
2014
|
8
|
3
|
6
|
17
|
|
0
|
5
|
8
|
13
|
TOTAL
|
8
|
265
|
500
|
773
|
|
0
|
75
|
454
|
529
|
I am informed by AIB and Bank of Ireland that they do not report lending to SMEs by county. In addition, I am informed by the banks that the main reasons for refusal of credit to SMEs include lack of repayment capacity, poor account operation profile, security related issues and non-viable business plans.