Written answers

Wednesday, 12 December 2012

Department of Finance

Banking Sector Regulation

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Minister for Finance further to Parliamentary Question No. 75 on the 28 November 2012, if he will explain the reason it would be commercially sensitive for Bank of Ireland to reveal the sought after information when the Chief Executive of Allied Irish Banks in their presentation to the Oireachtas Committee on Finance, Public Expenditure and Reform on 31 October 2012 detailed that of the €3.5 billion target, €600 million was specifically new lending and they did not call giving someone a new facility new lending; if he will provide a like for like figure from Bank of Ireland with respect to the €600 million detailed by AIB; and if he will make a statement on the matter. [55919/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The FOI Acts give a definition of “commercially sensitive information” as “information whose release could prejudice the competitive position of the organisation”. The pillar banks regularly supply information to my Department and the Central Bank and much of this information is described by the banks as commercially sensitive. In some cases, the banks may be willing to put the information requested into the public domain notwithstanding that it may be commercially sensitive. To my knowledge, neither pillar bank has published information on new lending to new customers.

As the Deputy pointed out, the CEO of AIB told the Joint Committee on Finance, Public Expenditure and Reform that €600 million of its lending was specifically new lending. This includes both brand new facilities and top ups/increases to existing facilities but only the additional element of top ups is included in the €600 million.

The CEO of Bank of Ireland told the same Committee that at least 97% of the €3.5 billion will be new or increased lending to existing or new customers. He also said that Bank of Ireland do not count restructured lending in their targets. Officials in my Department are continuing to engage with both banks and with the Central Bank and Credit Review Office on these numbers.

The lending targets imposed on the two pillar banks are only a part of the Government’s strategy to ensure that viable SMEs are able to access the credit they need. In my recent budget statement, I announced a ten point tax reform plan to help small businesses. I also announced the sanctioning of the appointment of additional reviewers in the Credit Review Office to ensure that SMEs appealing the banks’ decisions to decline credit receive a considered and timely response to their application. We are currently engaged in a public consultation process in order to see what more the Credit Review Office can do to ensure SMEs are getting the support on bank lending they require and I would welcome any proposals from the Deputy on this topic which can be submitted to croassessment@finance.gov.ie . I would strongly urge viable SMEs to appeal any refusals of credit to the Credit Review Office.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Minister for Finance further to Parliamentary Questions Nos. 76 and 77 of 28 November 2012, if he will explain the reason it is the case that PTSB, AIB and National Assets Management Agency, three State owned institutions can provide the requested data but Irish Bank Resolution Corporation deem this material commercially sensitive; if he will consider in view of this fact instructing Irish Bank Resolution Corporation to provide this data or at very least provide an explanation for what distinguishes IBRC’s commercially sensitive concerns relating to this data from the other State owned institutions; and if he will make a statement on the matter. [55920/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I have been informed by IBRC that this information is commercially sensitive to its operation due to the Bank’s unique position in the Irish market place as an asset recovery bank in wind down and cannot be disclosed for this reason.

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