| 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
Irish Economy 2015: Retail sales volume up 8.8% in 12 months to January
Irish Economy: Only 8% of 90,000 jobs added in 2013/14 in Industry/ ICT sectors
Irish economy adds 29,000 jobs in 2014; Labour force down 10,500; Broad jobless rate 19%
Ireland: Only 3% of Irish SMEs are active in manufacturing - Part 2
Benchmarking Irish food & drinks industry in 2015 - Part 1
Irish Economy: Davy looks at political risks to economic recovery
Irish overseas 'contract manufacturing' mainly tax avoidance
Ireland 2016: "Best small country in the world" for business? - a FAIL
Irish Boom & Bust: Could conventional wisdom be fooled again?
Benchmarking income tax to attract Irish emigrants home - spin or substance?
Irish pension managed funds began 2015 with strength
Irish per capita net worth at €124,523 in Q3 2014; household debt at €34,846; Earnings €35,830
Wild swings as Irish industrial production plunges 12.7% in December 2014
Ireland: McKinsey not as sanguine as Noonan on debt sustainability
Irish Economy 2015: January Live Register + schemes at 446,000 - broad jobless rate at 21%
Irish services activity rose 4.1% in 2014; PMI increased in January 2015
Irish Economy 2015: Strong Christmas sales reflected in January Exchequer returns
Irish Economy 2015: Central Bank and Moody's forecast similar growth levels this year
Irish new car registrations in January 2015 up 31%
Irish manufacturing PMI rises into 2015; May include overseas "contract" bookings
Irish Economy: IMF expects GDP rise of 3¼% in 2015; Warns of distortions
Scotch whisky exports at £3.9bn; Irish whiskey exports at €365m
UK productivity falls; Ireland's apprenticeship system remains a shambles - Part 2
UK, Ireland talk up full employment; Focus on quantity not quality - Part 1
Ireland: Government explains how it understates recession job losses
Ireland: Government's spin and lies damage the economy
Dublin Airport's 75th birthday is today
Allied Irish Banks announces departure of its chief executive David Duffy
Irish annual prices fell in December; Goods exports slid in 12 months to November
Ireland: Kenny gets sums wrong on jobs - missing 60,000
Ireland has 4,000 exporters, Denmark has 30,000
Enterprise Ireland says a net 8,476 jobs were added by client firms in 2014
Irish Economy 2015: Banks will have to detail reasons for SME loan decisions
Irish industrial production rises at fastest pace since 1998 - but it may be an illusion
Irish official services index drops in November 2014 contradicting PMI survey
Irish retail sales volume up 0.2% in November 2014
Irish pension managed fund returns in double digits in 2014
Irish Live Register + activation scheme numbers at 450,100 in December - 21% of workforce
Ireland: Jobs in foreign-owned exporting sector in 2014 below 2000 level
Irish Exchequer deficit falls to €8.8bn in 2014; Budget deficit at 4% of GDP