| 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
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March
Irish Spring Statement: Coalition's unofficial launch of general election campaign today
Spring Statement: Coalition visionless on Irish economy's long-term challenges
Ireland is 3rd most expensive location in Eurozone for consumer goods & services
Ireland: ESRI research shows income of poor fell most during recession
Ireland: Spring Statement - Ibec seeks income tax cuts; higher public spending
Irish Economy: ESRI says recovery remains strong; Warns about vote-buying Budget
Burton in Boston begs Berlin to back Budget election bust
Dell hugely benefited from Irish, Dutch, Singaporean tax havens
Ireland: Cash outflows of €20bn in crisis years 2010/11 remain unexplained
Irish GDP up 4.8% in 2014, GNP up 5.2%; Goods exports up 23% on tax deals
Ireland: Financial services 'strategy' a menu of 30 steps; 24,000 or 35,000 jobs?
Irish industrial production fell slightly in January
US study on FDI into Ireland flawed; Ambassador says "incredible"
Irish pensions funds performed strongly in February
Irish Live Register + activation numbers at 440,680 in February; Broad jobless rate at 20%
Growth of Irish service sector slowed in February but remained sharp
Irish tax revenue to end-February 2015 up €345m on budget target
Irish manufacturing PMI highest in February since 1999 - maybe a fairytale?
Low pay and high pay in Ireland
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?