Terence Flanagan
Ceist:183. Deputy Terence Flanagan asked the Minister for Finance the support available for Irish small businesses from the banks; and if he will make a statement on the matter. [49578/12]
Amharc ar fhreagraTuesday, 13 November 2012
Ceisteanna (183)
Freagraí scríofa
As the Deputy is aware, the Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks were required to sanction lending, including lending for working capital purposes, 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 Head of the Credit Review Office (CRO), Mr John Trethowan, stated in his recently published ninth quarterly report that “€3.5bn of sanctions for each bank is a very challenging target, however the remaining five months typically show more lending activity and I am of the view that, after a slow start to the year, the targets will be a challenge but still may be achieved.” In terms of rejection rates from banks in general, the CRO can review decisions by the pillar banks to refuse, reduce or withdraw credit facilities (including applications for restructured credit facilities) from €1,000 up to €500,000. The Credit Review Office is overturning 55% of the decisions referred to them, supplying over €9.5m of credit, supporting 813 full time and 46 part time jobs in the SME sector.
The Relationship Frameworks provide that “the board of each bank will determine the bank's strategy and commercial policy..” but I am aware that the banks provide a range of products for Irish SMEs and also support and help SMEs through various initiatives. For example, the banks have implemented common application forms for business credit and worked on developing cash flow planners.
I would encourage all businesses to keep open communications with their bank and to take advantage of the services available to them.