Bernard Durkan (Kildare North, Fine Gael)
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Question 78: To ask the Minister for Finance when it is expected that the banking sector will provide the necessary credit for business in order to maintain reasonable growth prospects in the future; and if he will make a statement on the matter. [27886/11]

Bernard Durkan (Kildare North, Fine Gael)
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Question 79: To ask the Minister for Finance the stage at which it is expected that Irish banks will lend sufficiently to meet the requirements of businesses; and if he will make a statement on the matter. [27887/11]

Bernard Durkan (Kildare North, Fine Gael)
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Question 84: To ask the Minister for Finance if the banks have given any indication as to their willingness to meet the borrowing requirements of the business and domestic sectors; and if he will make a statement on the matter. [27892/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 78, 79 and 84 together.

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 in SME and other important sectors. This is in excess of Central Bank 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.

As the Deputy may be aware, the Government has imposed lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. 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.

Both pillar banks have provided me with their plans to ensure that the 2011 target is achieved. This is particularly relevant given 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."

On the issue more generally of the demand for credit, my Department is in the process of commissioning an independent survey of the demand for credit within the SME sector. The outcome will provide the necessary information to better inform Government policy in this important sector of the Irish economy. It is vital that the banks continue to make credit available to support economic recovery. However, it is not in the interest of the banks, businesses or the economy for finance to be provided unless the business is viable and has the capacity to meet the interest payments and repay the sum borrowed.