Wednesday, August 28 11:33:52
Lending to SME by Irish banks fell by E364 million during the second quarter of this year (1.4pc) and by E1.5 billion over the year to the end of June - a drop of 5.8pc, latest Central Bank figures show.
This brings the total outstanding amount of credit advanced to SMEs in these sectors to E25.3 billion and follows an annual decline of 4.6pc in the year ending June 2012. Credit advanced to all non-financial, non-property related enterprises decreased by E893 million over the quarter (2.3pc), and by E1.8 billion over the year to end-June 2013 (4.6pc), bringing total credit outstanding to non-financial, non-property related enterprises to E38 billion.
This follows annual declines of 4pc and 5.3pc at end-March 2013 and end-December 2012, respectively.
Credit advanced to all property-related enterprises engaged in construction and real estate activities was 5.8pc lower over the year ending June 2013, following a decrease of E972 million in Q2 2013. Lending to SMEs in these sectors fell by 3.6pc in the year ending June 2013, which included a decline of E219 million in Q2 2013.
Deposits held by Irish resident private-sector enterprises in credit institutions in Ireland rose by E1.1 billion (1.2pc) during Q2 2013, compared with an increase of E12.4 billion (15.6pc) during Q1 2013. Non-financial enterprise deposits were E36.5 billion at end-June 2013, following a quarterly increase of E1.1 billion (3pc)..
Deposits from these enterprises grew by 4.8pc on an annual basis in June 2013, compared to an annual increase of 2.5pc in March 2013.