Friday 9 December 2016

Banks reject survey claims of cutbacks in lending for smaller firms

Published 22/06/2010 | 05:00

THE MAIN representative body for banks in Ireland last night strongly rejected the findings of a survey carried out by small business group Irish Small and Medium Enterprises (ISME).

  • Go To

The Irish Bankers' Federation (IBF) said the survey was misleading and inaccurate.

The survey showed that 55pc of companies who applied for funding in the last three months had had their applications refused and that 82pc of firms who took part in the survey said banks were making it more difficult for SMEs to access finance. Nearly a quarter (24pc) of respondents said using the family home as collateral was brought into discussions on loans.

ISME chief executive Mark Fielding said the "results confirm that the banks don't give a hoot about the rest of the economy and are only concerned about saving their own hides".

Accuracy

However, IBF chief Pat Farrell questioned the accuracy of the survey and cited a report carried out by accountancy firm Mazars last April, which showed that 84pc of credit applications by small firms were approved, despite the fact that 35pc of SME loans were now in arrears.

"Banks are committed to supporting viable businesses through these challenging times and the focus has to be on the key issue of viability," he said.

Mr Fielding dismissed the IBF's criticism and called for the Central Bank to investigate lending practices.

When asked if they planned to conduct an investigation into SME lending, the Central Bank refused to comment directly but did say it had begun to collect data on SME lending on a quarterly basis.

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business