SME lending targets for AIB and Bank of Ireland are no longer needed, John Trethowan of the Credit Review Office said in his 13th report reviewing the accessibility of credit for small and medium sized enterprises (SMEs) and farms.
Given the policy framework now in place, Mr Trethowan said that “fresh targets are not necessary”, despite the expiration of previous targets for AIB and Bank of Ireland.
According to the 13th review which was published today, 55 per cent of appeals were found in favour of borrowers, resulting in €21.6 million of credit being made available to SMEs and farms, “helping to protect 1,725 jobs”.
In the report, Mr Trethowan said that there are signs of a recovering economy, given that the majority of the appeal requests are now for working capital increaeses and business investment.
The other main demand factor is for refinancing debts held by foreign banks who are exiting the Irish market, he said, but warned that the SME/farm market is becoming “increasingly concentrated”, as a result of the withdrawal of these banks.
“This is tending to create a situation whereby those banks which remain can achieve their objectives on lower risk lending, which may not be meeting the needs of the economy”.
