Banks are charging Irish SMEs dual interest rivals to pay

  • Banks are charging Irish SMEs dual interest rivals to pay
    Independent.t. E.
    The Irish small and medium enterprises in the two times less likely to apply for loans and overdrafts than in comparable markets. When looking for loans, Irish firms are twice more likely to be rejected.
    https://www.independent.ie/business/irish/banks-charging-irish-smes-double-the-interest-rivals-pay-37176714.html
    https://www.independent.ie/business/article37176713.ece/f88ec/AUTOCROP/h342/2018-08-02_bus_42957730_I1.JPG

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The Irish small and medium enterprises in the two times less likely to apply for loans and overdrafts than in comparable markets. When looking for loans, Irish firms are twice more likely to be rejected.

This is according to a report by the Central Bank on lending conditions for SMEs in Ireland.

It shows the three big banks – Bank of Ireland, aib and Ulster Bank continue to dominate in the sector. The market share of three largest creditors was 86pc of new loans in the first half.

It also shows the Irish firm are paying twice as much to borrow as rivals in Europe. The interest rate for non-financial corporations (NFC) loans of less than €250,000 average here in March of 5.2 PC, while the comparable interest rates in Europe were 2.6 PC.

Growing pot – €altitude 994m a year in 2017 – outside of Bank financing to SMEs by the Bank is limited to a small number of companies operating in high-tech sectors, the Central Bank said.

Meanwhile, the Central Bank handles the surge of applications from companies that provide financial services are looking for an Irish licence ahead of a planned withdrawal of great Britain in the EU next year, said yesterday the Deputy Governor.

“As a result, the quarter and month, we are dealing with an unprecedented volume of applications for licenses to operate in Ireland that are processed within a relatively short period of time,” said the Deputy Governor ed Sibley said in a statement.

The Central Bank processed four applications in the first half of the year, major investment firms, compared to the same period last year. Any application for the regulation of credit institutions, such as banks.

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