Lending to SMEs down €364m in Q2

Irish banks’ lending to SMEs, not trading in either the property or financial sectors, fell by €364 million — or 1.4% — during the second quarter, when compared to the preceding three-month period.

The data — published yesterday by the Central Bank — also shows that lending levels to such firms dropped by €1.5 billion, or 5.8%, on a year-on-year basis, during the second quarter. It details a marked drop in the rate of increase of corporate deposit levels held by the banks.

According to the Central Bank, gross new lending to SMEs — drawn-down amounts of new loan facilities — amounted to €413m during the three months from April to the end of June.