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Nov 11, 2011 - 12:40

ISME chairman says banks not lending

MyHome Content Studio
By MyHome Content Studio
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ISME chairman says banks not lending

The chairman of small business group ISME will tell its annual conference in Dublin that banks owned by the taxpayer are failing to respond to the needs of small business.

John Ryan criticises the banks, claiming they are refusing credit to most small businesses and imposing "unfeasible" terms on those they lend to.

"It is about time that the individuals who run the banks were reminded of their responsibilities to the wider economy and start contributing to economic growth instead of delaying our economic recovery," he says.

Mr Ryan urges the Government to ensure that credit is made available to viable businesses, through alternative sources if not by the banks. He says this could happen through a State investment bank, or alternative forms of finance from the European Investment Bank.

The ISME chairman also suggests that the Government should allow business owner-managers to use part of their pension funds to re-invest in the business.

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