Brian O'Shea (Waterford, Labour)
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Question 128: To ask the Minister for Finance the position regarding the ease of access to lending, particularly working capital, for small, medium and large businesses here; the progress made to date in respect of implementing the recommendations made in the Mazars Report on small medium enterprise lending here; and if he will make a statement on the matter. [37679/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Independent Review of Credit Availability was published on 10 July. The review showed that demand had fallen sharply, with the value of new applications for credit down by 42% while refusal rates varied by size of company from 19% to 30%. Stock of credit remained static since June 2008, indicating that new credits broadly matched repayments.

A follow-on Review covering the period to end September 2009 is currently underway and is expected in the coming weeks.

In the context of the recapitalisation, Allied Irish Bank and Bank of Ireland made explicit commitments 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. AIB and Bank of Ireland have also committed to public campaigns to actively promote small business lending at competitive rates with increased transparency on the criteria to be met. The measures taken to date by the recapitalised banks, including those relating to lending, are outlined in the supplementary booklet on NAMA and I would direct the Deputy to Section 4 of that booklet. The Financial Regulator has been monitoring implementation of these commitments.

With regard to drafting regulations under the NAMA Bill 2009, I will be introducing a Report Stage amendment to the Bill to provide a power to issue guidelines to the participating institutions on lending practices and procedures which will improve the flow of credit to SMEs and, if necessary, other sectors. The power will be a wide ranging one and will allow for a response adapted to the particular circumstances of different institutions and sectors. This approach recognises that this is a complex situation and allows for a flexible response to changing credit needs.