Billy Kelleher (Cork North Central, Fianna Fail)

"Your Business Your Bank" is a draft document prepared through the work of the credit supply clearing group. The document is aimed at bank business customers and seeks to bring greater clarity to the current realities of funding business and how business customers can best position their businesses to secure the funding they need. The text of the document is currently being finalised and it should be possible to have the document published in the coming weeks.

Other initiatives have been already introduced to assist businesses in their relationships with banks. With the establishment earlier this year of the Credit Review Office under John Trethowan, small and medium-sized enterprises, SMEs, being refused bank credit have access to a formal mechanism for reviewing their cases. This is in addition to the banks' own internal appeals mechanisms which have been formalised and strengthened.

The code of conduct for business lending to SMEs introduced last year by the Financial Regulator under the provisions of the Central Bank Act 1989 sets out the processes banks are required to adopt in facilitating access to credit for businesses. The code also promotes fairness and transparency in the treatment of SMEs by the banks.

As the Minister, Deputy Batt O'Keeffe, noted, under the 2010 bank recapitalisation arrangement AIB and Bank of Ireland have both committed to making available not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011. This must include funds for working capital for businesses. The Credit Review Office is closely monitoring the lending policies of AIB and Bank of Ireland lending policies and their lending commitments in 2010 and 2011, thus ensuring that viable SME business customers get access to credit.

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