Dáil Éireann Debate, Tuesday - 20 October 2020
210. Deputy Marc MacSharry asked the Minister for Finance the measures the board of the SBCI has taken in 2020 to arrest the drop in profits and get the company back to 2017 profit levels; and if he will make a statement on the matter. [31061/20]
Amharc ar fhreagraSection 8 of the SBCI Act 2014 lays out the functions of the SBCI. These include the promotion and provision of finance to SMEs and the design of credit facilities for SMEs. Section 8(2) of the SBCI Act 2014 notes that the SBCI should “seek to obtain a positive financial return for the State”, in the achievement of its functions. As such, The SBCI operates under a sustainability mandate rather than a profit maximisation model.
The business model of the SBCI is to serve as a wholesale institution providing lower cost finance and risk sharing to on-lenders in the business market in Ireland. The SBCI is continuing to build on its significant progress to date by offering a wider range of supports to the SME sector. This includes the Future Growth Loan Scheme, the Covid-19 Working Capital Scheme, the €2bn Covid-19 Credit Guarantee Scheme, which it operates on behalf of the Department of Business, Enterprise and Innovation, and the provision of lower cost liquidity to its non-bank on-lending partners. The SBCI also retains the ability to respond to unforeseen challenges to the Irish economy and adapt its product offering to maximise the support available to Irish business. The current crisis has demonstrated the value in the ability of the SBCI to respond quickly to support our SME sector.
