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THE CREDIT REVIEWER has reported that too many people are complaining about how banks are refusing to lend to businesses – without themselves having actually applied for a loan.
Publishing his seventh quarterly report this morning, John Trethowan said monthly reports he received from the country’s two pillar banks, AIB and Bank of Ireland, indicated that “a formal application from a viable business to the banks stands a good chance of being successful”.
This was also backed up by an independent survey carried out by Mazars, Trethowan said.
Trethowan called for small businesses to be given better guidance on the exact data that banks now needed in order to approve loans, but welcomed work that had already been undertaken to help to resolve this.
“Given the weakened condition of many [small and medium enterprises] following such a long period of subdued trading, whenever a recovery in domestic demand does take place, I expect that many requests for credit could be refused,” he said.
In those circumstances, he said, the Credit Review Office “will be needed to ensure that businesses with existing or future potential viability can get access to credit”,
The report showed that of the loan appeals dealt with by his office in the last quarter, one third were overturned, while a slightly smaller number were upheld.
In other cases the bank and borrower agreed to revisit their case, or no decision had yet been reached.
Separately, statistics produced by the Central Bank this morning showed that lending to consumers and businesses had fallen in February, with lending to businesses having fallen by 2.2 per cent in the twelve months to January 2012.
Businesses outside the financial sector had accessed €548 million during January, against €665 million in December.
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i applied for a loan in 2010, i was refused, for that i am very grateful
They might as well put a big sign up saying don’t apply we’ll say NO ,that might have something to do with it
Lies lies and more lies , ask the accountants , mortgage brokers , business people , even ask the general staff in the banks , don’t come out with this rubbish and try and con us !
Incredibly skewed report:
1) Complaints seem artificially high as business owners are told not to even bother applying for loans, which they justifiably complain about.
2) Because of this there is now an artificially inflated ratio of applications to loans being granted as these initial “chats” are disregarded.
3) Banks then use this ration to prove that they are in fact lending to small and medium businesses business which, at this stage, everyone bloody knows about.
Circular logic is circular.
And of course we believe the banks
Yeah right
Didn’t ISME address this before? I seem to recall someone on the radio saying people were inquiring about loans and told not to bother applying. Therefore, technically, there is no application that was turned down. But in practice, they had been told to not even try.
perhaps I dreamed it. Like I’m dreaming this. But then, if that and this are both dreams, then it is congruous to discuss one in the same dream-context of another.
I work in a foreign owned bank. I sit beside the new business team and it’s amazing how few calls they receive from genuine businesses looking for finance.
Given the amount of complaints I can only assume that businesses are not looking around to see what alternative options are open to them aside from their existing banks.
Tell me the name of your bank &.Ill see you in the morning. I have work a business plan & 25 years experience. i need about 300k.
In which country do you work in this ”foreign owned bank” Jack Johnson?
go to the bank for a loan:
step 1: go meet your account handler for a pre “loan application” meeting.
step 2: be told they don’t think the application would be approved
step 3: leave without actually applying
no wonder so many ” loan applications” are being approved they only send forward the ones they know have a chance.
B(w)ANKERS
I would like to complain. I seem to be paying, through my taxes, for bank loans that I never actually applied for. Does Mr Trethowan want to massage a statistic on that?
Scum.
We bail them out with our money and theu wont help,fcuk you.
“In those circumstances, he said, the Credit Review Office “will be needed to ensure that businesses with existing or future potential viability can get access to credit”.”
Ah yes, the ubiquitous quango caveat. Appears in all the quarterly/annual reports from such quarters.
If they’re not cracking heads now, what are they going to do in the future?
Why would a bank not end against a viable proposal? Thats how they make their money.
have your say