| 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
Ireland: Recovery on track but fantasy economics endure
Net emigration by Irish nationals at 124,000 in 2009-2014
Q1 2011-Q2 2014: Irish employee jobs up 21,000; 130,000 part-timers seeking full-time work
Irish Economy: Job numbers & workforce fell in H1 2014; Finfacts proved right
Irish Economy: In 4 years to Q2 2014 average hourly earnings fell by 1.5%
Irish Budget 2015 & Economy: More demand for tax cuts
At least one fifth of Irish SMEs have direct exposure to property debt
Irish Economy 2014: Export volume grew by 7% in the second quarter
Irish consumer sentiment increased in July
Domestic ownership of Irish government bonds rises from 28% to 48% since 2012
Irish Economy 2014: Average annual professional vacancies up 6% in July
IMF says Ireland can repay bailout loans early without penalty
IATA says Dublin-London second-busiest international route
Irish Economy 2014: How strong is the economic recovery?
Irish Economy 2014: Industrial production dipped 18.2% in June; Up 3.5% in 12 months
Irish Economy 2014: Annual consumer prices rose 0.3% in July
Irish Economy 2014: Growth to remain strong in 2014/ 2015 says ESRI; High debt, low credit are risks
Irish pension managed funds up an average 6.7% in year to July
Official Irish services index up 0.5% in June 2014; 1.1% in 12 months
Irish Economy: Services PMI rises in July; CSO data more muted
Irish Economy: July Exchequer deficit of €5.2bn is €798m lower than Budget 2014 target
Irish Economy 2014: Live Register numbers + schemes at 469,00 in July
Irish Economy: Bruton publishes new FDI policy; Avoids inconvenient facts
Irish Economy: Central Bank raises 2014 forecasts
Irish corporate tax policy like property bubble driven by short-term interests
Irish Economy: Retail sales volume up 4.8% in year to June; Ex-cars at 3.6%
Irish income inequality fell during the economic bust
Irish Economy: Bruton and politics of jobs numbers; How to add 50%
Corporation Tax Reform: Irish Government should reject pleadings of short-termists
Irish Economy: Bruton's claim of 70,000 jobs added in past 18 months is not correct
FDI in Ireland: Grant Thornton publishes promotional brochure not balanced report
Irish Banking Inquiry: Advisory group says begin crash saga 20 years ago
Moody's forecasts Irish growth rates "of at least 3% for the next few years"
Irish National Competitiveness Council fails to separate wheat from the chaff
Irish SME Finance: Oireachtas committee calls for less dependency on traditional banking
Irish Economy: Merchandise exports up 15% in May
Irish industrial production fell in May; up 32.3% in 12 months & 16.4% in period 2010-2014
Irish indigenous tradeable exports at 9% of total headline exports in 2013
Irish consumer prices up 0.4% in 12 months to June 2014
Official Irish services index fell in May; PMI survey level was at highest since 2007