Colm Burke (Cork North Central, Fine Gael)
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147. To ask the Minister for Finance if he or his Department have had any discussions with the banks in respect of speeding up the process of small businesses meeting with banks, and in particular, reducing the time period for dealing with such loan applications; and if he will make a statement on the matter. [20944/23]

Michael McGrath (Cork South Central, Fianna Fail)
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As Minister for Finance, a key strategic priority is a well regulated, sustainable banking and financial services sector. All viable businesses operating in Ireland should have the opportunity to access sufficient finance to meet their enterprise needs in a manner that supports growth and employment in the economy. That is why my Department has a range of measures to in place to ensure viable SMEs can access appropriate finance at a reasonable cost from both bank and non-bank sources.

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.

I would also draw the Deputy's attention to the most recently published Department of Finance SME Credit Demand Survey covering the April to September 2022, which can be located at - gov.ie - Credit Demand Survey April 2022 - September 2022 (www.gov.ie). The results of this survey show that credit demand remained unchanged in the six months to September 2022, with 17% of SMEs reporting they applied for bank finance.

A total of 60% of all finance applications were processed within the stipulated 15 working days of receipt of all information from the company. The average amount of time from application to decision was 26 working days. The proportion of loans that were still pending stood at 9%.

The Deputy may be aware that the Central Bank's SME Regulations include enhanced protections for all SME borrowers, including requirements on lenders to provide SME borrowers with greater transparency around the application process and associated timelines.

Section 14 of the regulations state that, “If a regulated entity cannot make a decision within 15 working days of receipt of a completed application on whether it will grant or refuse an application for credit, the regulated entity shall inform the borrower, in a durable medium, of the reasons why the regulated entity’s assessment of the application will take longer than 15 working days and the expected time-frame within which a decision will be made”.

If there is an issue, the SME can contact the Credit Review Office for support.

The Credit Review Office helps SME or farm borrowers who have had an application for credit of up to €3 million declined or reduced by the participating banks, and who feel that they have a viable business proposition. The Credit Review Office also examines cases where borrowers feel that the terms and conditions of their existing loan, or a new loan offer, are unfairly onerous or unreasonably changed to their detriment. This is a strictly confidential process between the business, the Credit Review Office and the bank. Further details are available at www.creditreview.ie/.