Banks found “wanting” over lending to challenged SMEs
The pillar banks lack the lending skills necessary for more challenged SMEs looking for credit, according to the head of the Credit Review Office, John Trethowan.“Most of existing bank lending is to low- and medium-risk SMEs. But there are a number of SMEs that have viable businesses but who don’t have a good track record because of the environment over the past few years,” said Mr Trethowan, who was appearing before the Oireachtas finance committee yesterday. “They need access to credit, but this is where the banks are found wanting.”
Mr Trethowan noted that the Irish Banking Federation was now offering four-day courses on SME lending to all sectors for younger staff members of the pillar banks, which he described as a positive development.
His office has received 323 review applications since its inception three years ago, with 215 reviews completed to date.
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