Irish SME credit supply and demand: comparisons across surveys and countries
AbstractThis letter provides a consistent picture of Irish SME credit supply and demand up to March 2012 across two data sources: the European Commission and European Central Bank Survey of Access to Finance of Small and Medium Enterprises (SAFE) and the Mazars SME lending demand survey, commissioned by the Department of Finance. The data report that the Irish rejection rate for credit applications is the second highest in the euro area, while Irish SMEs are among the most likely to have faced increased collateral requirements, increased interest rates, or lower loan quantities. On the demand side, the data depict Irish credit demand, as measured by changes in firms’ reported need for external financing, to be at or close to the euro area average, while application rates for credit are slightly lower than average. The difference between Ireland’s ranking on demand and application rates is partly explained by a share of discouraged borrowers, who have demand for credit but do not apply for credit, that is double the euro area average.
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Bibliographic InfoPaper provided by Central Bank of Ireland in its series Economic Letters with number 08/EL/12.
Date of creation: Aug 2012
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-06 (All new papers)
- NEP-BAN-2012-10-06 (Banking)
- NEP-CFN-2012-10-06 (Corporate Finance)
- NEP-ENT-2012-10-06 (Entrepreneurship)
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