ISME: Banks not implementing European funds for SME lending
More than half of bank branches (57%) contacted by the Irish Small and Medium Enterprises Association (ISME) recently had no knowledge of European Investment Bank (EIB) funds for specific SME lending at reduced rates, it has been revealed today.
ISME also claims that almost three quarters of bank staff (74%) were ignorant of the new lending code for SMEs, introduced as a legal requirement by the Government in March.
The survey was carried out by telephone in the 10 days from June 15 among the six main banks’ branches across the country.
The EIB has made €350m available in low-interest loans to small & medium firms. These funds are to be administered by Irish banks.
Commenting on the findings, ISME chief executive Mark Fielding was scathing of the banks management.
"If this is the way that our banks are playing their part in the economic recovery effort, God help the small & medium sector, for the banks won’t," he said.
"The banks’ current behaviour is another indication of their continuing high-handed disregard for small business, the economy and the national interest.
"It is a sorry state of affairs when banking cannot be left to bankers, and trust, for so long the cornerstone of the banking system, is lost and small business goes to the wall because banks are ‘closed for business’.
"The Financial Regulator was to monitor the Code and its implementation. One wonders is this a continuance of the axis of incompetence consisting of the Regulator, the Department of Finance and the banks.”
The Association called on the Minister for Finance to ensure that the EIB funds were being loaned where required and to enforce the law that all the banks train their staff on the lending code for SMEs.
