Richard Bruton (Dublin North Central, Fine Gael)
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Question 181: To ask the Minister for Finance if he has audited the delivery of lending commitments by banks (details supplied) made as part of the €7 billion recapitalisation agreement in 2009; and if he will make a statement on the matter. [25654/10]

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 committed 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. AIB and Bank of Ireland also committed to public campaigns to actively promote small business lending at competitive rates with increased transparency on the criteria to be met.

Both my officials and the Financial Regulator receive quarterly reports in relation to the lending commitments made. The performance of the banks in this regard was published in the NAMA supplementary information booklet (blue book). The main highlights showed that AIB and Bank of Ireland both lent in excess of €2.5bn to SMEs in 2009 while there was significant lending to FTBs. Both banks have maintained a strong presence in the promotion of mortgages to FTBs.

In the context of NAMA and the associated recapitalisations I sought further contributions to economic recovery from the banks. In my statement on 30 March I announced further specific lending targets on the main business banks, AIB and Bank of Ireland. They will make available for targeted lending not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011. The two banks have each submitted SME lending plans both by geography and sector for 2010 and 2011 in light of the €3 billion target. These plans are being reviewed by my officials and Mr. John Trethowan, the Credit Reviewer.