Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 93: To ask the Minister for Finance if he has received reports from the banks covered under the guarantee scheme with regard to their lending to small businesses. [27280/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As part of the recapitalisation package announced on 11 February, Allied Irish Bank and Bank of Ireland reconfirmed their December commitment to increase lending capacity to small and medium enterprises (SMEs) by 10% and to provide an additional 30% capacity for lending to first time buyers in 2009. If the mortgage lending is not taken up, then the extra capacity will be available to SMEs. Compliance with this commitment is monitored by the Financial Regulator. The banks make quarterly reports to ensure compliance and the first reports to end March 2009 were received in a timely manner.

Additionally, an independent review of credit availability was agreed in the context of the recapitalisation of AIB and Bank of Ireland. The purpose of the review was to ascertain the position on credit availability to SMEs in Ireland. The Steering Group for the review consisted of representatives of the Departments of Finance and Enterprise, Trade and Employment, Forfás, Enterprise Ireland, the Irish Banking Federation and the six main banks involved in lending to SMEs, business representatives from ISME, Chambers Ireland and Small Firms Association. The final report of the Review of Lending to SMEs has just now been received. The report is quite extensive, running to almost 100 pages plus appendices. It will be considered by the Cabinet Committee on Economic Renewal which is meeting this afternoon. The intention is that it will be published shortly.