| 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

Follow Finfacts on Twitter

 
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 Economy Last Updated: Feb 16, 2012 - 9:08 AM


Central Bank survey shows 70% of loans to Irish SMEs at end of 2010 were performing
By Finfacts Team
Feb 16, 2012 - 9:04 AM

Email this article
 Printer friendly page

The Central Bank of Ireland today published new economic research entitled 'The Irish SME Lending Market ¡V A Snapshot, December 2010, which shows that 70% of loans to Irish SMEs (small and medium sized businesses) were performing at the end of 2010. The Central Bank says that 18% were on a watch-list or were past due, while 12% were impaired.

The research provides a detailed overview of the shares and performance of loans across sectors of activity and loan size brackets. The work will be presented publicly at the Central Bank conference 'The Irish SME Lending Market: Descriptions, Analysis, Prescriptions' on March 2.

The data used in the analysis come from a large sample of SME loans collected for the March 2011 Financial Measures Programme Report and used in stress testing the Irish banking system. The loan data can be divided into three categories of performance: Performing; Watchlist or Past Due; Default or Impaired.

The key findings of the research are as follows:

  • At end-2010, the largest sectors in terms of the Irish financial institutions¡¦ SME exposure were Wholesale & Retail (20%), Financial (16%), Hotels & Restaurants (15%) and Agriculture (15%);
  • Of these large sectors, loans to the Hotels & Restaurants and Financial sectors were of much larger value on average;
  • In total, 70% of SME loans were performing at end-2010, with 18% categorised as Watchlist or Past Due and 12% Impaired;
  • The sector with the largest share of performing loans was Agriculture at 81%;
  • Of the large-exposure sectors, Hotels & Restaurants had the lowest share of performing loans at 49%. Other sectors with low share included Construction (65%), Financial (65%), Manufacturing (66%), Professional & Real Estate (69%) and Wholesale & Retail (69%);
  • In analysing the share of performing loans across the distribution of loan value, it was found that the lowest shares of performing loans were among the largest loans, with a share of performing loans below 50% in the top 10% of loans;
  • Among the smallest 75% of loans by value, the share of performing loans hovers between 70 and 85%, with the share falling as loans get larger thereafter;
  • By sector, it is shown that most sectors follow the above pattern whereby amongst the largest value loans, the share of performing loans falls below 60 and even 50%;
  • Two sectors stand out in this regard: in the Hotels & Restaurants sector, the share of performing loans in the top 20% of loans by value is below 30%; in the construction sector the figure is similar.

Check out our new subscription service, Finfacts Premium , at a low annual charge of €25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

It's a simple fact that in the prevailing economic climate, the provision of high quality content cannot be sustained through advertising alone. 

Business executives who put a premium on time and value high quality information, should use our service.

Related Articles
403 Forbidden

Forbidden

Execute access is denied.


© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Key Irish legal services reform parked in Limbo
Irish Economy: Annual price rises dip to 0.2% in October
Irish Economy: Merchandise exports down 3.8% in third quarter
Bruton back in US to reassure investors on Irish tax - can he?
Hidden Taxes Report: Kenny denies Irish special Apple tax deal despite contrary "evidence"
Irish private cars licensed for first time rose 6.7% in October
Irish pension managed funds had mixed performance in October
Irish Jobs: Policy flaws require Bruton's focus not spinning for headlines
Trichet's letter on Irish bailout has no surprises - Update
Irish Economy 2014: Industrial production up 3.3% in September; Sales value down 0.1%
Official Irish services index shows rise of 1.1% in September after August drop of 1.3%
Irish Economy 2014: Numbers on Live Register + public schemes at 447,000 in October - 20% of workforce
Irish Exchequer deficit at end October at €8.5bn; Tax receipts €1.1bn above target
Growth in Irish service PMI strong in October; Watch for official data
NTMA attracts over €8bn of bids for 15-year bond
Irish consumer sentiment dipped in October
Irish Economy 2014: PMI survey indicates accelerating growth in manufacturing
Germany and EIB to boost lending to Irish SME firms
Bono struggling again as anti-poverty campaigner and tax avoider
Lack of technical expertise & funds impeding digital growth in Irish SMEs
Irish Economy 2014: Retail sales stagnant in September; Ex-vehicles flat in quarter
Irish Economy: Government's band-aid measures reveal rising strategic deficit
Irish Finance Bill 2014: Tax breaks for foreign executives enhanced; Abuse likely to rise
Globalization, technological change and GDP's disconnect - Part 3
Randox Laboratories to add 470 jobs in Donegal by 2020
Irish Economy 2014: Goods exports up 23% in August following 16% dip in July
Irish Budget 2015: Economic analyses of the tax and spending changes
Double Irish tax scheme axed; Conventional wisdom wrong again - Part 1
Irish Budget 2015: Some reactions of vested interests + others
Irish Budget 2015: Main points of speeches
Irish Budget 2015: Small income tax cuts; €100 for pensioners & Double Irish axed in 6 years
Bono defends Irish tax regime to defend his Dutch one
Irish startups plan to double new jobs numbers not really a plan
European Commission presses Ireland to end 'Double Irish' tax dodge in budget
Irish Budget 2015: New pension tax/ levy may fund income tax cuts/ social housing
Irish Economy: Tourism/restaurant jobs up 23,000 since 2011 - how many from VAT cut?
Irish Economy: ESRI notes GNP and trade data uncertainties / distortions in national accounts
Irish Economy 2014: ESRI says GNP will grow at 5% in 2014 and 2015
Irish Economy 2014: New car sales up 30.5% in year to September
Irish industrial production + services fell in August; Recall the excitable PMIs?