A credit review system announced in today’s Budget will create an appeals process for small businesses who have had their applications for credit refused by the banks
Minister for Finance Brian Lenihan said that in light of the “massive State commitment to the banking sector”, he was determined there would be a return to the taxpayer in the form of “credit which supports healthy Irish businesses and jobs”.
He said he would use his powers under the Nama legislation to issue guidelines to all banks participating in Nama who have small and medium enterprise business to ensure that SMEs, sole traders and farmers will have recourse to “an independent, external review of decisions of credit refusal by the banks”.
Mr Lenihan said he hoped that banks not participating in Nama or covered by the Government guarantee would also decide to participate.
The system will also examine the credit policies and practices of the banks for all SME sectors, paying particular attention to sectors such as the retail, car dealerships, tourism, and agriculture “where particular stresses have been reported”.
"This will help me to decide what further action might be necessary to secure the flow of credit. I intend to publish the analysis from the review process so that the performance of the banks participating in Nama will be clear to all.
Mr Lenihan has asked John Trethowan, an experienced banker "with a demonstrated commitment to public and social service" to oversee the establishment of this credit review system with initial administrative support from Enterprise Ireland.