Paudie Coffey (Waterford, Fine Gael)
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Question 85: To ask the Minister for Finance the level of Allied Irish Bank and Bank of Ireland lending to small and medium enterprise here this year as part of their conditions for State support; and if he will make a statement on the matter. [35056/11]

Paudie Coffey (Waterford, Fine Gael)
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Question 86: To ask the Minister for Finance the action he will take if Allied Irish Bank and Bank of Ireland are failing to meet their lending requirements to small and medium enterprises for this year to ensure that these targets are met; and if he will make a statement on the matter. [35057/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 85 and 86 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 has mentioned, 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." In this regard, my officials, along with Mr Trethowan, have quarterly meetings with the pillar banks to ensure that their lending targets are being achieved.

Although the level of lending to SMEs by the pillar banks in the year to date is commercially sensitive, I can advise the Deputy that both banks have informed my Department that they are on course to meet their lending targets for 2011.

The Credit Review Office will provide more clarity on the progress of the two banks in relation to the 2011 target when he issues his next quarterly report before the end of November.

Paudie Coffey (Waterford, Fine Gael)
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Question 87: To ask the Minister for Finance the level of Allied Irish Bank and Bank of Ireland lending to small and medium enterprises in Waterford city and county this year; and if he will make a statement on the matter. [35058/11]

Michael Noonan (Limerick City, Fine Gael)
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The level of lending by the pillar banks to SMEs in Waterford city and county this year is commercially sensitive and banks do not report at county level. However, Mr John Trethowan, Head of the Credit Review Office, indicated in his fourth quarterly report that as part of his monitoring he has been able to show that no region, nor any trade sector, has experienced any adverse disadvantage in their proportion of bank lending since the base month of January 2010.