The Central Bank has published new regulations for lending to SMEs, which regulated lenders must comply with from the second half of 2016.
Credit Unions will have until the beginning of 2017 to comply with the new rules.
The regulations are aimed at giving SME borrowers greater transparency around the loan application process.
Under the new rules lenders will have to provide SME borrowers with written reasons for declining credit and set up an internal appeals panel, while providing greater protections for guarantors.
In addition, those lending to SMEs will have to contact borrowers who have been in arrears for 15 working days, and warn them if they are in danger of being classified as not co-operating.
The Irish Small and Medium Enterprises Association has welcomed the new Central Bank regulations for SME lending.
In a statement ISME said it hoped “the revised regulations would help to address some of the issues in the banking sector, including the lack of transparency, poor communication and inadequate training that is endemic in our banks”.
