Eoghan Murphy
Ceist:88 Deputy Eoghan Murphy asked the Minister for Finance his plans to encourage banks to provide timely credit for small and medium enterprises. [22115/11]
Amharc ar fhreagraThursday, 21 July 2011
Ceisteanna (91, 92)
Ciara Conway
Ceist:96 Deputy Ciara Conway asked the Minister for Finance the steps that are being taken to ensure that an adequate pool of credit is available to fund small and medium sized business in the real economy during the restructuring and downsizing programme; the methods businesses will be able to use to access this pool; the means by which the availability of this credit is measured; the way he will compel institutions to provide credit; and if he will make a statement on the matter. [22232/11]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 88 and 96 together.
The Deputies will be aware that the banking system restructuring plan creates capacity for the two Pillar Banks, Bank of Ireland and AIB, to provide lending in excess of €30 billion in the next three years. SME and new mortgage lending for these banks is expected to be in the range of €16-20bn over this period. In each bank, a team of senior managers will be dedicated to the task of ensuring lending continues to grow to support economic growth. This lending capacity is incorporated into the banks' deleveraging plans which allow for repayment of Central Bank funding through asset run-off and disposals over the period to 2013.
Both pillar banks provide my Department with monthly figures on balance sheet volumes, sanctioned facilities and geographic and industrial breakdowns of their SME lending. The Deputies may also be aware that under the terms of the government recapitalisation, both banks also produce a quarterly report which incorporates figures for sanctions and drawdowns by SMEs. The data contained in these reports will continue to be reviewed and analysed by my Department and the Credit Review Office to ensure that the banks are compliant with the terms of the Government recapitalisation as it relates to the provision of credit for SMEs.
I expect the pillar banks which have received considerable Government support to develop and offer a range of products to support SMEs and to ensure that lending targets are met.