Bank lending remains crucial for SMEs, says Cyril Roux

Bank lending will remain a crucial source of funding for SMEs despite attempts to develop alternative forms of finance, according to Central Bank deputy governor Cyril Roux.

Even though a large number of SMEs acquired unsustainable property- related debt during the boom, the improving economy is having a positive impact on loan arrears, Mr Roux said.

The Central Bank has strict guidelines in place to ensure that the banks have appropriate strategies to deal with SME loan arrears, he added.