Jerry Buttimer (Cork South Central, Fine Gael)
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Question 21: To ask the Minister for Finance if he accepts the claims by various banks that they are lending to a high proportion of applicants for loans and mortgages or alternatively that is he of the view that potential borrowers are being dissuaded, by bankers and brokers, from making formal applications to banks; and if he will make a statement on the matter. [25278/11]

Michael Noonan (Limerick City, Fine Gael)
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The restructuring of the domestic banking sector creates capacity for the pillar banks to lend in excess of €30 billion over the next three years to the SME and to other important sectors. This is in excess of the Central Bank's estimates of the likely demand for SME and mortgage credit over this period. Both pillar banks are concentrating on the Irish economy and need to issue credit to make profits and rebuild their balance sheets. The Government has imposed lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013 inclusive. Both banks will be required to sanction lending of at least €3 billion this year, €3.5 billion next year and €4 billion in 2013 for new or increased credit facilities to SMEs.

Having noted the comments contained in the fifth quarterly report of the Credit Review Office, which stated that 'it will be a challenge for each of the banks to reach their €3bn sanction target for new and restructured facilities in the current year' , I have written to both pillar banks asking them to provide me with their plans to ensure that the 2011 target is achieved.