Dáil Éireann Debate, Friday - 7 September 2018
182. Deputy Billy Kelleher asked the Minister for Finance the bank and non-bank on-lenders of Strategic Banking Corporation of Ireland, SBCI, funds in 2017 and to date in 2018, in tabular form; and the monetary amount loaned to SMEs to date. [36914/18]
View answer183. Deputy Billy Kelleher asked the Minister for Finance the lending targets the SBCI has set for lending to SMEs in 2017 and in 2018, in tabular form; and the progress to date on same. [36915/18]
View answerI propose to take Questions Nos. 182 and 183 together.
The Strategic Banking Corporation of Ireland (SBCI) is Ireland’s National Promotional Institution for SMEs and its strategic mission is to deliver effective financial supports to Irish SMEs that address failures in the Irish credit market, while driving competition and innovation and ensuring the efficient use of available EU resources. The SBCI achieves this aim through the provision of low cost liquidity and risk sharing activities supporting the provision of appropriately priced, flexible funding to SMEs.
The SBCI does not lend directly. Rather, the SBCI operates through its partner finance providers, known as on-lenders. The SBCI currently has three bank and four non-bank on-lenders: AIB; Bank of Ireland; Ulster Bank; First Citizen Finance; Finance Ireland; Bibby Financial Services Ireland and FEXCO Asset Finance.
The Strategic Banking Corporation of Ireland commenced on-lending in March 2015. To the end of March 2018, the SBCI has supported loans through both its on-lending and risk-sharing activities, totaling €952m to 23,867 Irish SMEs supporting 122,227 jobs. The SMEs who received SBCI finance are from a variety of business and economic sectors, and they are spread across every region of the country.
The SBCI is currently seeking to broaden its distribution capability and market coverage thereby serving to meet the needs of Irish SMEs and drive competition in the SME finance market. The SBCI continues to work on developing new innovative products, such as the Brexit Loan Scheme, which was launched in March 2018. This €300m scheme is designed to provide funding support to enable eligible Irish businesses to implement necessary changes to address the challenges posed by Brexit. Additionally, the SBCI is also continuing to work on a number of other initiatives, including the continued use of guarantees and risk sharing schemes to support lending by finance providers. These aim to address recognised market failures and improve the risk appetite of partner finance providers.
Chronological Table of SBCI Funds and Guarantees Committed to On-Lenders
|
Date |
On Lender |
Liquidity (Funds) |
Risk Sharing (Guarantees Provided) |
|
Dec-14 |
Bank of Ireland |
€200m |
|
|
Feb-15 |
Allied Irish Bank |
€200m |
|
|
Oct-15 |
Finance Ireland |
€51m |
|
|
Nov-15 |
Merrion Fleet |
€25m* |
|
|
Nov-15 |
Allied Irish Bank |
€200m |
|
|
Dec-15 |
Ulster Bank |
€75m |
|
|
May-16 |
First Citizen Agri Finance |
€40m |
|
|
Jun-16 |
Bibby Financial Services Ireland |
€45m |
|
|
Nov-16 |
Fexco Asset Finance |
€70m |
|
|
Jan-17 |
Bank of Ireland |
€65m |
|
|
Jan-17 |
Allied Irish Bank |
€60m |
|
|
Jan-17 |
Ulster Bank |
€25m |
|
|
Mar-18 |
Bank of Ireland |
€128m |
|
|
Mar-18 |
Allied Irish Bank |
€122m |
|
|
Mar-18 |
Ulster Bank |
€50m |
|
|
May-18 |
Bibby Financial Services Ireland |
€25m |
*Facility closed in July 2017 following the sale of Merrion Fleet to Société Générale
SBCI liquidity funding remains available through Finance Ireland, First Citizen, Bibby Financial Services Ireland and Fexco Asset Finance.
Risk-sharing activities totaling €450m were provided via the €150m Agricultural Cashflow Loan Scheme launched in January 2017 and more recently through the €300m Brexit Loan Scheme launched in March 2018.
The SBCI’s lending to SMEs is largely driven by market demands and needs that are not fully met by the private sector. The Deputy can rest assured that the SBCI is working to develop a more diverse range of on-lenders and innovative products. This will enable it to broaden its distribution capability and market coverage, meet the evolving requirements of the SME finance market and contribute to a sustainable and competitive economy in the medium to long term
