Ireland’s three big banks have a virtual stranglehold on small-business lending
AIB, Bank of Ireland and Ulster Bank control 95% of the market.
The State Established Strategic Banking Corporation of Ireland (SBCI) is subsidising the big banks:
SBCI lends to the Banks (BoI, AIB, Ulster Bank, KBC, etc.) at 0.8%
SBCI guarantees 80% of the Loan the Banks make to SMEs.
Current Bank rates for SBCI loans are 4.5% for <€250,000 and 3.5% for >=€250,000.
The Banks mark-up of SBCI loans to SMEs is c. 2.7% to 3.7% & the loans are 80% guaranteed by SBCI.
