Martin Mansergh (Tipperary South, Fianna Fail)

While falling demand for credit has undoubtedly played a role, the perception of limited credit availability, and anecdotes of actual instances, can be damaging at this time of fragile business and consumer confidence. This is the reason the Government decided that there should be an independent review of bank lending to provide an accurate picture of the current position to SMEs in Ireland. This will report within a short timeframe.

The recapitalised banks, Allied Irish Banks and Bank of Ireland, have agreed to fund this independent review, which is being managed jointly by the banks, the Government and business representatives. Independent consultants will be appointed to conduct the review in the next few days.

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