Brendan Griffin (Kerry South, Fine Gael)
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Question 150: To ask the Minister for Finance if he will direct State assisted financial institutions to provide invoice discounting facilities to smaller and medium sized enterprises; and if he will make a statement on the matter. [20065/11]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that the banking system restructuring plan creates capacity for the two Pillar Banks, Bank of Ireland and AIB, to provide lending in excess of €30 billion in the next three years. SME and new mortgage lending for these banks is expected to be in the range of €16-20bn over this period. In each bank, a team of senior managers will be dedicated to the task of ensuring lending continues to grow to support economic growth. This lending capacity is incorporated into the banks' deleveraging plans which allow for repayment of Central Bank funding through asset run-off and disposals over the period to 2013.

Both pillar banks provide my Department with monthly figures on balance sheet volumes, sanctioned facilities and geographic and industrial breakdowns of their SME lending. The Deputy may also be aware that under the terms of the government recapitalisation, both banks also produce a quarterly report which incorporates figures for sanctions and drawdowns by SMEs. The data contained in these reports will continue to be reviewed and analysed by my Department and the Credit Review Office to ensure that the banks are compliant with the terms of the Government recapitalisation as it relates to the provision of credit for SMEs. I expect the pillar banks which have received considerable Government support to develop and offer a range of products to support SMEs and to ensure that lending targets are met.

As I have said before the Credit Review Office will, on application from the borrower, carry out an independent and impartial review of a bank's decision to refuse or reduce credit. Invoice discounting is included in the definition of credit facility which can be reviewed. I would strongly advise anyone who has unsuccessfully appealed through the bank's own internal appeals process to seek a review by the Credit Review Office. Just last week, I raised the threshold for reviews by the Credit Review Office from €250,000 to €500,000.