The Irish SME lending market - a snapshot, December 2010
The Prudential Capital Assessment Review (PCAR) 2011 uncovered significant potential losses in the Irish banking sector, leading to a considerable recapitalisation. This letter uses a large sample of the loan level data provided for PCAR 2011 to present descriptive statistics on the SME lending market in Ireland as of December 2010. These data allow us to document the geographic and sectoral allocation of loans, exposure sizes and the performance of those loans. We find that there are significant losses, both incurred and potential, across all sectors of activity. These losses are most severe in the hotels and restaurants, construction and wholesale and retail sectors. In almost all sectors, a striking pattern in which large exposure buckets are associated with larger shares of non-performing loans, points to a higher-than-normal risk of large SME loans leading to significant losses. The contribution of property speculation to these losses is unobserved in these data but of huge policy interest.
|Date of creation:||Feb 2012|
|Contact details of provider:|| Postal: P.O. Box No. 559, Dame Street, Dublin 2|
Phone: (01) 671 6666
Fax: (01) 671 6561
Web page: http://www.centralbank.ie
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lawless, Martina & McCann, Fergal, 2011. "Credit Access for Small and Medium Firms: Survey Evidence for Ireland," Research Technical Papers 11/RT/11, Central Bank of Ireland.
When requesting a correction, please mention this item's handle: RePEc:cbi:ecolet:03/el/12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fiona Farrelly)
If references are entirely missing, you can add them using this form.