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Banking Sector Credit Provision

Dáil Éireann Debate, Tuesday - 22 May 2012

Tuesday, 22 May 2012

Ceisteanna (146, 147, 148, 149)

Peadar Tóibín

Ceist:

233 Deputy Peadar Tóibín asked the Minister for Finance the level of lending to small and medium enterprises that was new loans and the level that were additional funding for 2011. [25428/12]

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Peadar Tóibín

Ceist:

234 Deputy Peadar Tóibín asked the Minister for Finance the level of lending to small and medium enterprises that was roll over or extensions to existing load facilities for 2011. [25429/12]

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Peadar Tóibín

Ceist:

235 Deputy Peadar Tóibín asked the Minister for Finance the level of lending to new small and medium enterprises in 2011. [25430/12]

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Peadar Tóibín

Ceist:

236 Deputy Peadar Tóibín asked the Minister for Finance the level of lending to existing small and medium enterprises in 2011. [25431/12]

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Freagraí scríofa

I propose to take Questions Nos. 233 to 236, inclusive, together.

As the Deputy is aware, 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 period 2011-2014. SME and new mortgage lending for these banks is expected to be in the range of €16-20bn over this period. 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.

The Government has imposed lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks were required to sanction lending of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved their 2011 targets. The pillar banks are required to submit their lending plans to the Department and the Credit Review Office (CRO) at the beginning of each year, outlining how they intend to achieve their lending targets. The banks also meet with the Department and the CRO on a quarterly basis to discuss progress. The banks provide my Department and the CRO with monthly returns outlining their SME lending figures, broken down at a sectoral and regional level. The monthly management meetings with the pillar banks also provide a forum for the issue of SME lending to be raised by my Department.

Data provided by the Central Bank indicates that the drawdown of new lending by non-financial SMEs from credit institutions in Ireland was €3.1 billion in 2011. For the Deputy's information, the relevant statistics for credit made available to small business are accessible at: http://www.centralbank.ie/polstats/stats/cmab/Documents/ie Table A.14.1 Credit Advanced to Irish Resident Small and Medium Sized Enterprises.xls

In terms of the level of lending to small and medium enterprises that was roll over or extensions to existing loan facilities for 2011, the two pillar banks have provided me with the relevant data but as this material is commercially sensitive I cannot share it with the Deputy. Neither my Department nor the Central Bank has a breakdown of the level of lending between new and established SMEs in 2011.

The Deputy may wish to note that the Central Bank gathers and collates statistics on a wide range of Financial Services Sector activities on an on-going basis. As a general rule, my Department does not engage in a separate exercise to collect such statistics, but has access to and relies on statistics provided and published by the Central Bank.

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