Bank claims 82% of loans approved

BANK of Ireland’s director of business banking in Ireland and Britain has said he is “fed up to the back teeth” of people saying they can’t get loans from the bank.

Speaking at the Cork Chamber Business Breakfast held in association with the Irish Examiner, Mark Cunningham was accosted from the floor with a complaint the bank was not lending to people.

This was refuted by Mr Cunningham who said loan applications had fallen dramatically.

“We used to get about 1,300 applications a week, we are now down to about 900,” he outlined.

Management consultant Jim Murphy said that what he is hearing on the ground is quite different.

“Many of my clients are telling me they can’t get money from Bank of Ireland.” he said.

Mr Cunningham retorted: “To be quite honest I am fed up to the back teeth of people telling me there is no credit available. I really am. I don’t know how many auditors, how many people we need to bring in. How many times we have to publish information. What volume of loans we need to share and demonstrate to people?” he said.

Mr Cunningham said Bank of Ireland has approved more than €3 billion in business lending so far this year, but that a little over €2bn of that lending has been drawn down to date.

He said they have approval rates of about 82% on loan applications.

Mr Cunningham said there are approximately €1.25 million in overdrafts that are not being used.

“Overdraft utilisation is perhaps at its lowest level in the last five of six years,” he added.

Director with Global Properties Barry Nagle, speaking from the floor, said they have had 15 sales in the last two months with all being financed by Bank of Ireland.

“Half those people had to be re-educated. They went to their own bank first and were refused. They thought they could not get finance from anyone, they thought all banks were the same, until they talked to us and we brought them down to Bank of Ireland — most got their verbal approval within five to seven days,” he said.

Mr Nagle said that on the “residential side” Bank of Ireland is definitely open for business.

Mr Cunningham disclosed that many companies are using profits to pay-odd debt rather that expand or purchase assets which are historically cheap.