Bernard Durkan (Kildare North, Fine Gael)
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106. To ask the Minister for Finance the extent to which he expects to encourage the banking sector to meet the requirements of small and medium-sized industry and the retail or commercial sector; and if he will make a statement on the matter. [45073/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Government policy remains 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, including those in the retail and commercial sectors.

In line with Action 62 of the APJ 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.

In terms of monitoring requirements for all SMEs including the retail sector, my Department commissions biannual surveys to ascertain the demand for credit by SMEs. This survey series, most recently conducted by Behaviour & Attitudes on behalf of my Department, is the most comprehensive survey of SME credit demand in Ireland, covering 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, are included. The survey covers demand for credit from both bank and non-bank sources.

I would draw the Deputy's attention to the most recently published Department of Finance SME Credit Demand Survey, covering the period October 2016 to March 2017, which can be found at

.

The SME State Bodies Group, chaired by my Department, provides a forum for the development and implementation of policy measures to enhance SMEs' access to a stable and appropriate supply of finance. As the Deputy will be aware, the Action Plan for Jobs over the past number of years has set out a range of commitments to ensure viable SMEs can access appropriate finance at a reasonable cost from both bank and non-bank sources. These Government policies have supported year on year increases in new lending to SMEs, as measured by the Central Bank.

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 monitor the availability of both bank and non-bank credit so as to ensure that Irish SMEs have sufficient access to finance.