Batt O'Keeffe (Cork North West, Fianna Fail)
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Access to bank credit for businesses, particularly SMEs, has been central to Government Initiatives in addressing the crisis in the banking sector. Both the 2009 and 2010 Bank Recapitalisation arrangements provided specific commitments from the recapitalised banks to assist SMEs. 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 AIB's and Bank of Ireland's lending policies and their lending commitments in 2010 and 2011. The Credit Review Office is also available to pursue cases where SMEs are refused credit from the recapitalised banks.

Over recent months, I have met separately with Allied Irish Banks, Anglo Irish Bank and Bank of Ireland to discuss the availability of bank credit for businesses, especially SMEs. The last such meeting with Bank of Ireland. took place in early September. On 26 July 2010, my colleagues, Ministers Brian Lenihan and Eamonn Ryan, and I held a further meeting with AIB to discuss that bank's lending practices to SME's. At the various meetings, I raised concerns about the claims of many small businesses that some bankers were stonewalling loan requests and were not providing credit to viable enterprises. I reminded the banks of the purpose of the recapitalisation package and of the huge investment of taxpayers' money into the banks aimed at getting our economy moving again.

The message from the two main banks was that they were open for business and available to provide credit to viable businesses. They assured me that they were fully committed to supporting businesses and would meet the requirements laid down for them in the recapitalisation package of 30 March 2010. I have ongoing contact with the main banks in relation to their lending to businesses and will, together with my colleague the Minister for Finance, and John Trethowan of the Credit Review Office, continue to ensure that they meet their lending commitments under the 2010 Recapitalisation package in terms of providing sufficient credit to the business sector. In this regard, John Trethowan recently indicated that the situation was much more positive for bank customers than it was six to nine months ago.