NTMA to review future of lending arm SBCI
The National Treasury Management Agency has appointed EY to carry out an external review of the Strategic Banking Corporation of Ireland.
The NTMA has estimated that the value of the contract is €120,000 and expects the work to be carried out over an eight-week period.
The SBCI started lending in 2015 and, after four and a half years in operation, it has committed €1.5bn in lending and risk-sharing facilities, which have enabled the lending of over €1bn to more than 26,000 SMEs.
However, new loans drawn down through the SBCI slumped by 68% last year to the lowest level since the State-owned organisation opened for business, as small companies became cautious about taking on new debt.
“The purpose of the review is to inform the SBCI’s future strategy and product development in a rapidly changing market and support the SBCI as it continues to assist Irish businesses in accessing SME-friendly finance,” an NTMA spokesman said.
