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Written by Administrator
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Thursday, 05 March 2009 12:08 |
The Director of the Small Firms Association, Patricia Callan, has endorsed the new statutory Code of Conduct for Business Lending to SMEs, published by the Financial Regulator. Callan stated: “We have worked hard with the Financial Regulator, the Departments of Finance and Enterprise, Trade & Employment, and all of the licenced banks to ensure that this Code will deliver for the small business community in practical terms. We particularly welcome the fact that all the licenced banks have agreed to be legally bound by the Code and that it is not restricted to the recapitalized banks, as originally announced”.
“One of the key items we sought within the Code was the option for an annual review meeting for all SMEs with their bank, which will include a discussion on all credit facilities and the levels of security, which allows small businesses to ask for their security back if it is no longer required and they do not wish to leave it in place to cover future business banking transactions” stated Callan. “Other key items within the Code include applications being dealt with promptly, clear explanations being given for decisions made, a commitment not to seek unnecessary security and a clear procedure for the handling of complaints”, commented Callan.
“The Code, along with the commitment by the recapitalized banks to fund and cooperate with an independent review of credit availability and to increase their lending capacities to SMEs by 10%, the establishment of the “clearing group” to identify and solve issues around the flow of credit and the forthcoming additional SME finance funding from the European Investment Bank in early March, should serve to instill confidence in the small business community that their access to finance issues should now be resolved in a satisfactory manner, which is critically important in getting Ireland Inc’s economy back on track”, concluded Callan.
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Last Updated on Monday, 22 June 2009 19:08 |
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