The head of the Credit Review Office has called for an extension to the limit at which SMEs can appeal refusals for credit.
In his latest report on lending to small and medium-sized businesses, John Trethowan calls on the Government to increase the upper threshold for appeals to €3 million, from the current limit of €500,000.
The latest CRO report shows a 56% success rate for appeals for credit refusals.
Meanwhile, one third of lending to SMEs in the first quarter was categorised as new lending.
The two pillar banks – Bank of Ireland and AIB - are currently sanctioned with providing €4 billion each in SME finance.
Mr Trethowan said if that was all new financing, it would lead to a return to the “crazy lending patterns” that got the country into trouble in the first place.
The CRO was established by the Government three years ago and tasked with reviewing credit refusals to small and medium business by the main banks.
Initially there was a low uptake for the credit review office's services but in the past year there has been a surge in requests as awareness of the CRO's existence increases.
The Small Firms Association has welcomed the latest CRO report and supported Mr Trethowan's call for an increase in the size of credit refusals SMEs can appeal.
