ISME: Banks refuse loan requests to 55% of firms
ISME's Bank Watch Survey has revealed that more than of loan and overdraft requests have been refused in the three months to end of February.
The results of the survey, which attracted almost 800 responses, show that 55% of companies who applied for funding in the last three months were refused credit by their banks, in comparison to 42% in October 2009 and 20% in May 2008, Bank Watch Surveys.
Also, up to 32% of the requests were for overdrafts, with 47% for term loans.
In the survey, 80% of companies claimed that banks are making it more difficult for SMEs to access finance.
According to ISME Chief Executive, Mark Fielding, said: "With Postbank and Halifax pulling out of the market, other foreign banks clearly looking for exit strategies, Bank of Ireland increasing lending charges and AIB’s refusal to accept switcher mortgages, together with these survey results confirm that, not only are the banks not lending, but the level of competition in Irish banking is rapidly diminishing.
"This is evidenced by those businesses that have been 'fortunate' to receive lending facilities, reporting increases in charges and interest payments associated with the facility."
