Anglo Irish Bank today became the third bank to offer a fund to provide term and working capital to small and medium-sized businesses.
The €500 million debt fund will provide term and working capital to assist the business sector and stimulate economic activity.
Anglo's move follows the announcement of a €1 billion fund by Bank of Scotland (Ireland) yesterday and the creation of a €250 million fund by Bank of Ireland.
The Minister for Finance Brian Lenihan said today he had asked banks covered by the Government guarantee scheme to look at the issue of credit in the economy at a meeting last week.
Anglo Irish said it would increase the scale of fund subject to demand.
"The fund will be open to any established and well managed trading business which can demonstrate that it has the ability to trade through the current climate, with the right support," the bank said in a statement.
Earlier today Anglo Irish Bank reported a 37 per cent fall in pretax profits to €784 million for the year to September 30th. The bank also revealed it has put aside €500 million in provisions for future loan losses, or 0.71 per cent.