Joan Burton (Dublin West, Labour)
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187. To ask the Minister for Finance if he has reviewed the most recent quarterly bank watch study from ISME on the ability of small and medium firms to receive loan approval and access to credit; his views on the refusal rate of 35% for requests for credit; and if he will make a statement on the matter. [16359/17]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy may be aware, the most recent ISME Bank Watch Survey for Quarter 1 2017 noted that 23% of companies who applied for funding in the three months covering December 2016 to February 2017 were refused credit by their banks.  The figure the Deputy is referring to was reported in the survey results for Quarter 2 2016.

The Deputy will also be aware that my Department conducts a biannual SME Credit Demand Survey. This survey series, currently being conducted by Behaviour & Attitudes, is the most comprehensive survey of SME credit demand in Ireland, covering over 1,500 respondents and involving over 6,000 direct telephone calls to SMEs. SMEs of all sizes trading in all sectors, excluding property development and speculative activities, and in all regions are included.

I would draw the Deputy's attention to the most recently published Department of Finance SME Credit Demand Survey covering the period April to September 2016 which can be found at http://www.finance.gov.ie/what-we-do/banking-financial-services/sme-credit-lending.  This latest survey indicates that the majority of credit requests continue to be approved fully with 84% of credit applications (excluding 'still pending') approved or partially approved.  The current rate of decline stands at 15% of all applications.

The Central Bank of Ireland's most recent SME Market Report for the second half of 2016 also shows that rejection rates, for credit applications by SMEs, loan/overdraft rejection rates are in line with euro area averages.  This report can be found here:

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