| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Last Updated: Jul 14, 2010 - 9:16:22 AM


Irish Credit Review Office: Bank of Ireland and Allied Irish Bank each to advance annual credit of €3bn to viable SMEs over next 2 years
By Finfacts Team
Jul 13, 2010 - 4:15:05 PM

Email this article
 Printer friendly page

Irish Credit Review Office: Bank of Ireland and Allied Irish Bank have each agreed to advance annual credit of €3bn to viable SMEs over next 2 years. The head of the Credit Review Office said the banks advised that where change has occurred, it has been in the tightening of adherence to compliance with lending policy criteria in the sanctioning process. He saw no evidence that credit overall was restricted.

The Minister for Finance and the Minister for Enterprise, Trade and Innovation today published the first quarterly report of John Trethowan, the Credit Reviewer, and summary Lending Plans for Bank of Ireland and Allied Irish Bank. These Plans are summaries of the more detailed commercially sensitive Plans submitted to the Minister for Finance as required under the NAMA legislation.

Both Ministers said unless our banks lend to viable businesses, our economic recovery will be stunted. “The overriding objective of Government is to ensure that the economic recovery that is now underway sustains existing jobs and creates new jobs. To achieve that objective, it is vital that credit is provided to Small and Medium Sized Enterprises which will be the key drivers of job growth,” said  Lenihan. He welcomed the lending plans of Bank of Ireland and Allied Irish Bank which outline how they will achieve the target of €3bn lending each over each of the next two years. “These plans have been reviewed by John Trethowan and both his Office and my Department will receive monthly progress reports from the two banks which will allow us to ensure they deliver on the strong commitments given in their plans to support viable businesses in all sectors of the economy and in every area of the country.”

The Minister for Enterprise, Trade and Innovation, Batt O'Keeffe TD, said: “The submission of the banks' tailored lending plans, together with the new internal appeals mechanism and credit review office, are significant steps the Government has insisted on taking on behalf of small businesses-owners who rightly demand a credit return on the investment they have made in our banking institutions.

I look forward to working closely with the credit reviewer and with the Minister for Finance in sustaining pressure on the banks to lend to viable small businesses so that jobs can be protected and created and our economic recovery secured.”

The Ministers also welcomed the inclusion in the lending plans a range of measures help foster business demand and to improve the service banks provide to their smaller business customers.

Credit Review Office

The Minister said that Trethowan’s findings in his first quarterly report would enlighten the debate about the availability of credit to business. He noted that Trethowan had found no evidence of constraints in the supply of credit to any sector of the SME / Farm markets in his review of the banks’ policies and guidelines. Trethowan also found evidence of a lack of experience among some front line bank staff in dealing with SMEs and helping them with loan applications.

Quarterly Report from John Trethowan, Credit Reviewer - lending to SMEs

Allied Irish Banks SME Lending Plan

Bank of Ireland SME lending Plan

“I am particularly pleased that the establishment of the Credit Review Office has led to a significant improvement in the banks’ own internal appeal mechanisms, which resulted in 20% of cases being successful although the numbers involved are still small. I would urge SMEs who are refused credit to invoke the internal appeals procedures followed if necessary by the Credit Review Office.”

The Minister set out the work of the Credit Review Office to date:

  • The Office operates a web site which received hits from over 2000 different users. The helpline has received almost 200 calls to date.

  • Trethowan has completed six reviews. He agreed with the bank in three of them, sided with the borrower in two cases and considered that more work was required by both the borrower and the bank in the other case. A further five applications are proceeding through the process.

  • Trethowan also worked with the two banks on placing their internal appeal mechanisms on a more formal basis. Of a total of 49 internal appeals completed between the two banks, 10 resulted in the refusal being overturned or sanctioned with conditions.

Although only a small number of reviews have been completed, the Minister said he was satisfied with the positive impact of the Credit Review Office which has given an independent right of appeal to businesses seeking credit and has resulted in the reversal of some credit refusals.

The low level of reviews to date may reflect a lack of awareness of the Credit Review Office but the Office has publicised its services through the media and in presentations to representative organisations. The two banks are required to make borrowers who are refused credit aware of the existence of the Credit Review Office and have been provided with leaflets on the Office for distribution to borrowers.

Related Articles
Related Articles


© Copyright 2010 by Finfacts.com

Top of Page

Irish
Latest Headlines
Ryanair revises up full-year profit guidance
AIB bank profitable in third quarter
Ryanair announces half-year profits up 32% to €795m
Ryanair benefits from improved customer service
Ryanair to buy 100 new Boeing 737 MAX 200
Finfacts server migration Thursday
State-owned Allied Irish Banks reports H1 2014 profit as bad loan charges plunge
Ryanair reports profit in its financial first quarter soared 152%
UK firm opens van dealership in Dublin
Ryanair reports 8% fall in full-year profit; US services to commence in 2019
Global Financial Centres Index: New York overtakes London; Dublin slips to 66 of 83 cities
Bank of Ireland reports “significant” improvement in 2013 results
Sale process of IBRC UK projects Rock and Salt completed
CRH says 2014 will be year of profit growth after reporting 2013 loss
Ryanair reports third-quarter loss
Irish Water says it saved €100m in setup costs
RSA Insurance fires two Irish executives for large loss/ accounting irregularities
Bank of Ireland will have to raise provisions by €1.4bn; AIB says it's "well capitalised"
CRH reports slightly improved third quarter
Central Bank says ownership of Newbridge Credit Union transferred to permanent tsb
Ryanair reports H1 profits rose by 1% to €602m
Dublin Web Summit: Irish Stock Exchange and NASDAQ OMX announce dual listing plan
Irish pension managed funds returned to growth during September
Dan O’Brien resigns as economics editor of The Irish Times
Central Bank says no action required on Anglo tapes revelations
Ryanair flew 9m passengers and Aer Lingus carried 1.1m in August
UK Competition Commission says Ryanair must cut Aer Lingus stake to 5%
CRH reports H1 2013 revenue dip and loss
Vodafone refunded UK after discovery of Irish tax haven deal
RBS reports half year profit; Ulster Bank posts reduced loss
Bank of Ireland cuts pretax losses in HI 2013 to €504m
Irish State-owned Allied Irish Banks reports losses of €758m in H1 2013
Service Announcement
Irish managed pension funds declined in June
VHI reports 2012 surplus of €54.3m; Health insurance made loss
Ex- Elan director says management / board "not competent to run a business"
Aer Lingus to put €140m in employees pensions fund; Ryanair apoplectic
Wednesday Newspaper Review - Irish Business News and International Stories - - May 22, 2013
Tuesday Newspaper Review - Irish Business News and International Stories - - May 21, 2013
Ryanair, Europe’s biggest low cost carrier, announced Monday record annual profits of €569m - - up 13%