SME lending slips further

Bank lending to SMEs fell by 8.9% on a year-on-year basis during the first three months of the year, marking the 22nd consecutive quarter of downward movement, new figures from the Central Bank have shown.

The mainstream banks lent €27.9bn to SMEs between the start of January and the end of March, which was down by 0.9% on the final quarter of 2016.

Property-related lending now represents just over 42% of Irish banks’ outstanding SME loan book. Property loans to SMEs fell by 11% year-on-year in the first quarter, with small and medium-sized firms repaying €2.9bn more than was drawn down in new loans.