Public banks with focus on SME lending proposed

A system of regional publicly owned banks with a focus on lending to the SME sector could play an important role in restoring faith in the banking system and supporting economic growth, according to a leading expert.

Niclaus Bergmann, who is the managing director of the German-based Savings Banks Foundation for International Co-operation, was in Dublin to speak at a conference organised by the lobby group, republicirelandbank.com.

Mr Bergmann said that a network of regional banks with close links to the local economy are the most effective type of SME lenders.