Report: Irish banks failing businesses

13 March 2012

Irish banks have failed to respond sufficiently to rising levels of demand for credit from small and medium-sized enterprises (SMEs) in recent months.

That is according to a new report by business lobbying group Isme, which has revealed the number of companies searching for finance over the previous quarter climbed to 37 per cent in comparison to the figure of 25 per cent recorded in the corresponding period last year.

However, despite this upward trend, financiers across the country are still rejecting some 50 per cent of all applications for loans from firms.

Although this represents a minor improvement on the figure of 52 per cent posted in 2011, Isme insisted that more needs to be done to help Irish firms eager to grow in the wake of the recession.

Mark Fielding, chief executive of the group, observed: "The results of [the] survey gives a lie to the banks' excuses that demand for credit from SMEs is weak."

By Asim Shah

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