Tuesday, 17 December 2019

Ceisteanna (134)

Robert Troy

Ceist:

134. Deputy Robert Troy asked the Minister for Finance the data in each of the years 2014 to 2018 and to date in 2019 for rejected bank finance applications by SMEs that were appealed to the Credit Review Office; the number and percentage of applications successfully appealed and for which finance was sanctioned; and the number and percentage of applications that were not successfully appealed, in tabular form. [53284/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

Since the Credit Review Office (CRO) was established, in 2010, the Credit Reviewer has issued regular formal reports which contain details on the appeals processed. The reports can be found on the website www.creditreview.ie

Details of the number of appeals for the period in question have been collated and presented in the following table, as requested.

The Deputy may wish to note that, in addition, to the formal Credit Review, the CRO Helpline has taken 1,921 calls, which has resulted in many borrowers’ queries and credit issues being resolved before a formal appeal process was necessary.

As per the guidelines for those institutions that participate in the credit review process, banks are required to ‘comply or explain’, if they do not agree with the opinion of the CRO.

The CRO also provided figures for cases where new information was discovered as a result of the review process that resulted in a bank requesting the case to be withdrawn and made the credit available to the borrower.

Where the CRO upholds a bank’s decision not to lend, it provides the borrower with a set of recommendations to address the weaknesses in the proposal. There are a number of specific Information documents on the CRO website that were developed to address common issues, faced by borrowers.

It should be noted that cases are abandoned for a number of reasons such as the borrower obtaining credit elsewhere, or it becoming evident to the borrower that the loan proposal is not viable after speaking with the Credit Reviewer.

Year

Total no. of cases

Borrower upheld and received credit

Borrower upheld and did not receive credit

Withdrawn by bank

Bank upheld

Abandoned

Work in progress

2014

82

33

5

4

31

9

 

2015

106

31

10

3

43

18

 

2016

105

34

13

8

39

11

 

2017

72

29

11

6

15

11

 

2018

77

30

8

6

25

8

 

2019 to date

61

18

6

6

16

3

12

Total

503

175

53

33

169

60

12