Pearse Doherty
Question:199. Deputy Pearse Doherty asked the Minister for Finance the reason the banking sector is not providing sufficient credit to developers to build homes; and if he will make a statement on the matter. [54994/17]
View answerTuesday, 16 January 2018
Questions (199, 200)
Pearse Doherty
Question:200. Deputy Pearse Doherty asked the Minister for Finance his views on whether a lack of sufficient affordable credit to developers is stunting the supply of housing; and if he will make a statement on the matter. [54995/17]
View answerWritten answers
I propose to take Questions Nos. 199 and 200 together.
As the Deputy is aware, Government policy is focused on ensuring that all viable small and medium sized businesses have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. The Deputy will also be aware that, in my role as Minister for Finance, I have no direct function in the relationship between the banks and their customers. Also, I have no statutory function in relation to the banking decisions made by individual lending institutions at any particular time and these are taken by the board and management of the relevant institution. This includes decisions in relation to products as determined by the banks.
However, officials from my Department collate and examine data from AIB and Bank of Ireland on a monthly basis, including data pertaining to the various sectors. Furthermore, my officials meet the banks on a quarterly basis to ensure an informed understanding of the wider SME bank lending environment which assists the development and implementation of policies aimed at ensuring SME access to finance and increased competition in the SME lending sector.
It should also be noted that the data published by the Central Bank of Ireland in its Quarterly Trends in Business Credit and Deposits series shows that new lending to Construction enterprises for year-end Q3 2017 totaled €141 million in drawdowns, a growth of almost 20% when compared to the same period in 2016.
Separately, ISIF is making a very substantial contribution to new private housing supply which is critical in terms of meeting the pent up demand for housing across all sectors of the market. In line with its double bottom line mandate, ISIF has already invested in a number of significant financing platforms and projects in the construction sector, and is actively examining other investment opportunities.
The Government remains committed to the SME sector, including those involved in Construction, and sees it as the key engine of ongoing economic growth.