MAZARS SURVEY:A breakdown in communications between banks and businesses is being blamed for the results of a new survey which found more than half of Small and Medium sized Enterprises (SMES) are of the view banks are not lending.

The SME Lending Study by accounting firm Mazars reports a perception among 51 per cent of SMEs that banks are not lending. Just one in five of these companies had first-hand experience of banks not lending.

Chambers Ireland deputy chief executive Seán Murphy said: “Of those businesses who perceived that banks are not lending only 20 per cent based their view on personal experience. It follows that there has been a clear communications breakdown between banks and their business customers that needs to be rectified as soon as possible.”

“It is a concern for us that a significant number of SMEs still believe that banks are not lending,” said Mark Cunningham director, Bank of Ireland business banking.

PAMELA NEWENHAM