Loan decision delays to SME sector criticised

Banks are further delaying decisions on lending to small business, according to a survey by one of the Republic’s lobby groups.

The Irish Small and Medium-sized Enterprise (Isme) association says in its Quarterly Bank Watch Survey that while demand for credit has grown, lenders are taking longer to make decisions.

The organisation claimed that the Republic's financial institutions were stalling on approving low-interest loans from the Strategic Banking Corporation of Ireland (SBCI) whose EU funds they are responsible for lending to business.

The association's chief executive Mark Fielding argues that businesses seeking cash to expand or hire new staff work on a "time-sensitive basis" and cannot afford to have the banks slow down their plans.

"These delays stem from a lack of proper training and efficiency in bank staff and, despite bank management assurances that training is ongoing, a Central Bank investigation is called for," he says.

The Isme also claims that the banks are not promoting SBCI funds as an alternative source of credit.