ISME accuses banks of refusing to lend

A FEROCIOUS row has broken out between the Irish Banking Federation (IBF) and ISME over the level of lending to business.

The latest ISME Bank Watch Survey, issued by the Irish Small and Medium Enterprises Association, indicates that banks have continued to refuse lending to the majority of SMEs. ISME chief executive Mark Fielding said the association is demanding a full investigation by the Central Bank into SME lending and a full disclosure of accurate lending figures.

“These disastrous lending figures are not being helped by the lack of business lending and risk analysis expertise within the branch network. This situation has been allowed to come about by bank management, formerly interested only in elaborate speculation rather than taking a manageable risk in backing ordinary SMEs,” he said.