MARK CUNNINGHAM, director of business banking at Bank of Ireland, faced a tough crowd at Isme’s annual conference yesterday.

Mr Cunningham told delegates at the conference that Bank of Ireland will probably lend €3.5-3.6 billion to the SME sector in 2010. This exceeds the bank’s commitment to provide €3 billion in new lending to small businesses this year.

However, when questioned by one unimpressed Isme member as to whether the €3.5-€3.6 billion projection represents new loans, he revealed that about 50 per cent will in fact relate to refinancing or restructuring of existing loans, and re-funding of overdrafts.

Mr Cunningham also said Bank of Ireland cannot continue to operate in an environment of rising funding costs without passing this on to its customers.