Banks ‘found wanting’ over lending to challenged SMEs

The pillar banks lack the lending skills necessary for more challenged SMEs looking for credit, according to the head of the Credit Review Office, John Trethowan.

“Most of existing bank lending is to low- and medium-risk SMEs. But there are a number of SMEs that have viable businesses but who don’t have a good track record because of the environment over the past few years,” said Mr Trethowan, who was appearing before the Oireachtas finance committee yesterday.

“They need access to credit, but this is where the banks are found wanting.”