Bernard Durkan (Kildare North, Fine Gael)
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276. To ask the Minister for Finance the extent to which he continues to use his influence with the banking sector to ensure the availability of adequate working capital particularly for the small and medium sized business sector; and if he will make a statement on the matter. [10437/17]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware that in my role as Minister for Finance I have no direct function in the relationship between the banks and their customers. I have no statutory function in relation to the banking decisions made by individual lending institutions at any particular time and these are taken by the board and management of the relevant institution. This includes decisions in relation to products as determined by the banks. 

However, in line with Action 62 of the Action Plan for Jobs 2017, officials from my Department collate and examine data from AIB and Bank of Ireland on a monthly basis, including data pertaining to the various sectors. Furthermore, my officials meet the banks on a quarterly basis to ensure an informed understanding of the wider SME bank lending environment which assists the development and implementation of policies aimed at ensuring SME access to finance and increased competition in the SME lending sector.

Government policy is focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. In this regard the Government has developed a number of initiatives to ensure that the supply of credit in the market is sufficient to meet the existing and future needs of SMEs.

As the Deputy is aware, a key objective of the Strategic Banking Corporation of Ireland (SBCI) is to ensure that SMEs can access low cost flexible loans from a variety of sources. The SBCI channels its funds through lending partners known as on-lenders. The SBCI currently has three bank on-lending partners and five non-bank on-lending partners. The SBCI has a current funding capacity of €1.05 billion which it makes available to its on-lending partners as demand from SMEs arises. To the end of September 2016, a total of €458 million has been lent to over 10,600 SMEs and the SBCI has committed a total of €906 million to its eight on-lending partners. In 2017, the SBCI will continue to make significant funding available to SMEs across Ireland.  

Another recent initiative is the €150 million Agriculture Cashflow Support Loan Scheme for Farmers announced by the Department of Agriculture, Food and the Marine. This fund will provide highly flexible, low interest loans to farming SMEs. 

The Microenterprise Loan Fund, administered by Microfinance Ireland, is an additional source of credit that provides loans for up to €25,000 to start-up, newly established, or growing micro enterprises employing less than 10 people.

The Credit Review Office is another government initiative that helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. This is a strictly confidential process between the business, the Credit Review Office and the bank. The Credit Review Office overturns more than 50% of appeals it receives. 

The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth. I can assure the Deputy that my Department, working with other relevant Departments, Bodies and Agencies, such as the Credit Review Office, will continue to advance policies to ensure the availability of both bank and non-bank credit so as to ensure that viable Irish SMEs have sufficient access to finance.