Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

SME Banking (Business Banking) - Ireland - November 2012

Small to medium sized enterprises (SMEs) continue to play a key role in the NI and RoI economies, with SMEs in NI accounting for almost 99.9% of all businesses, while in RoI some 99.7% of businesses.

In 2012 and moving forward, one of the key concerns facing Irish SMEs is access to credit, with the economic downturn resulting in many financial institutions being reluctant to grant credit to SMEs. This has taken its toll on the SME banking market with the value of credit products dropping between 2007 and 2012, while the value of deposit banking also declined.

Moving forward into 2013, access to credit for SMEs will continue to be necessary. With economic recovery predicted for 2013 and 14, this may see lending criteria relaxed, and thus growth of the SME banking market.

Some questions answered in this report include:

  • How have levels of access to credit changed for Irish SMEs?
  • What initiatives are being used to aid SMEs?
  • How will economic growth impact on SME banking demands?
  • Who are the key players in the SME banking market?
  • What are the key concerns of SMEs in Ireland?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Key themes of the report
        • Definition
          • Abbreviations
          • Market in Brief

            • Demand for credit still high
              • Credit market accounts for majority of SME banking market
                • Long wait for payment taking its toll of SMEs
                  • Future looking bright for SME banking demands
                  • Market Background

                    • Key points
                      • Limited banking suppliers for SMEs
                        • Figure 1: The main business banks in IoI, April 2010
                      • Regulation of banking
                        • Figure 2: The regulation and oversight of SME banking in NI, 2012
                      • RoI banking system also strongly regulated
                        • Figure 3: The regulation and oversight of SME banking in RoI, 2012
                      • SMEs present a strong market to Irish banks
                        • Figure 4: Percentage of private sector employment that SMEs account for by region, UK, 2011
                      • SMEs account for higher levels of turnover and employment in RoI
                        • Figure 5: Breakdown of Enterprises in RoI, by type of organization, 2011
                        • Figure 6: Percentage of private sector employment that SMEs account for, RoI, 2011
                      • SMEs well represented in Ireland
                        • Figure 7: The regulation and oversight of SME banking in RoI, 2012
                    • Internal Market Environment

                      • Key points
                        • Irish SMEs show strong demand for credit but loan approvals remain low
                            • Figure 8: Success rate of bank loan applications, NI, RoI and UK, 2007 and 2010
                          • Irish SMEs still perceive access to credit is getting worse
                            • Figure 9: External financing availability for SMEs over the past six months, Ireland, 2012
                            • Figure 10: External financing availability for SMEs over the past six months, Ireland, 2011 and 2012
                          • Firms feel they are increasingly likely to rely on internal financing in the future
                            • Figure 11: Expected financing availability for SMEs over the next six months, Ireland, 2012
                          • ISME claim lending conditions are getting worse… but are they?
                            • SMEs seek financing to help secure cash flow
                              • Figure 12: UK SME Employers reason for seeking finance, 2007 and 2010
                            • Late payments driving need to use credit to fund cash flow
                              • RoI government working to help SMEs
                                • Enterprise Finance Guarantee scheme in UK to aid NI SME businesses
                                  • High level of business banking account ownership among SMEs
                                    • Figure 13: The main reasons why SMEs chose bank for main business account, 2010
                                  • Company insolvencies remain high
                                    • Figure 14: Number of company insolvencies (inc voluntary), NI and RoI, 2008-12
                                • Broader Market Environment

                                  • Key points
                                    • GDP/GVA improvement a good sign for Irish SMEs
                                      • Figure 15: Economic outlook, NI and RoI, 2010-13
                                    • SMEs still reporting low revenues and profits
                                      • Figure 16: How Income generation indicators for SMEs over the past six months have changed, Ireland, 2012
                                      • Figure 17: Projected oil price projections (per barrel), by low, central and high price projections, 2011-30
                                    • RoI and NI exports see strong performance during downturn
                                      • Figure 18: Goods exports from RoI, by total value, 1990-2012
                                      • Figure 19: NI export sales, 2001-12
                                    • Chemicals, machinery and food top exported goods
                                      • Figure 20: Top five goods exports, NI and RoI, 2012
                                    • Unemployment still a key issue for many SMEs
                                      • Figure 21: Unemployment rate (% of labour force), actual and projected, NI and RoI, 2008-15
                                    • Base interest low, but SMEs face higher cost of borrowing
                                      • Figure 22: Official Bank of England (BoE) and European Central Bank (ECB) Interest Rates, January 2008-January 2012
                                  • Market Value and Forecast

                                    • Key points
                                      • Irish SME banking market experiences growth
                                        • Figure 23: Estimated market value for the total SME banking market*, IoI, RoI and NI, 2007-17
                                      • Stabilizing economy boosting value of SME market
                                        • SME banking market forecast to continue growing in value
                                          • Figure 24: Indexed estimated market value for the total SME banking market*, RoI and NI, 2007-17
                                      • Market Segmentation

                                        • Key points
                                          • Credit products worth 67% of total IoI SME banking market
                                            • Figure 25: Estimated ratio of SME credit advanced vs. deposits, NI and RoI, 2012
                                          • Stronger growth in credit market in RoI, compared to NI
                                            • Figure 26: Credit Advanced to SMEs, NI and RoI, 2007-17*
                                          • Bank loans account for the highest level of credit market value
                                            • Figure 27: The SME credit market by type of credit, NI and RoI, 2012
                                          • Deposits market declines sharply in RoI
                                            • Figure 28: Estimated SME bank deposits, NI and RoI, 2007-17
                                          • Deposit market in NI fares better
                                            • Figure 29: Indexed value of SME bank deposits, NI and RoI, 2007-17
                                        • Strengths and Weaknesses

                                          • Strengths
                                            • Weaknesses
                                            • Suppliers

                                              • Key points
                                                • Terminology key
                                                  • Grupo Santander
                                                      • Figure 30: Santander Business Current Account service fees and charges, 2012
                                                      • Figure 31: Santander Client Business Current Account, 2012
                                                      • Figure 32: Santander Client Business Reserve Account interest rates
                                                      • Figure 33: Santander Business Instant Access Deposit Account (Tier: £0+) interest rates
                                                      • Figure 34: Santander Online Business Bonus Saver Account (Tier: £0+) interest rates
                                                      • Figure 35: Santander Business Bonus Saver Account interest rates
                                                      • Figure 36: Santander Client Business Reward Saver Account interest rates
                                                    • Allied Irish Bank/First Trust
                                                        • Figure 37: All Ireland bank group’s loan portfolio by sector (% of group portfolio)
                                                        • Figure 38: AIB/First Trust small business bank account and charges
                                                      • Bank of Ireland (BoI) Group
                                                          • Figure 39: Bank of Ireland’s loan portfolio by sector (% of group portfolio)
                                                          • Figure 40: Bank of Ireland business bank account and charges
                                                        • Barclays Bank plc
                                                            • Figure 41: Barclays small business bank accounts and charges
                                                          • HSBC Bank plc
                                                              • Figure 42: HSBC small business bank accounts and charges
                                                            • Danske Bank Group
                                                                • Figure 43: Danske Bank small business bank accounts and charges
                                                              • Permanent TSB
                                                                  • Figure 44: Permanent TSB business bank account and charges
                                                                • Ulster Bank Group
                                                                    • Figure 45: Ulster Bank business bank account and charges
                                                                  • RaboDirect
                                                                      • Figure 46: Rabobank credit rating from international rating agencies, 2012
                                                                      • Figure 47: Longer term deposit account rates
                                                                      • Figure 48: Interest rates and frequencies
                                                                    • Irish Bank Resolution Corporation Limited (IBRC)
                                                                        • Figure 49: IBRC divisional lending by sector
                                                                        • Figure 50: Fees and charges applied to SME borrowers with a credit facility and with instalment credit products
                                                                    • Buyers

                                                                      • Key points
                                                                        • RoI businesses by size band
                                                                          • Figure 51: Breakdown of manufacturing and services businesses in RoI, by employee size band, 2011
                                                                        • RoI businesses by industry classification
                                                                          • Figure 52: Number of enterprises, by employment size band and industrial classification, RoI, 2010
                                                                        • Key statistics on RoI SME industries
                                                                          • SMEs in context – NI
                                                                            • NI businesses by size band
                                                                              • Figure 53: NI businesses, by size band, 2012
                                                                            • NI business by industry classification
                                                                              • Figure 54: Number of enterprises, by employment size band and industrial classification, NI, 2012
                                                                            • Change over time
                                                                              • Figure 55: Distribution of businesses, by employee size band, NI, 2007 and 2012
                                                                            • Manufacturing turnover
                                                                              • Figure 56: Manufacturing sales (£m), by enterprise size, NI, 2007/08-2010/11
                                                                            • Manufacturing export sales destinations
                                                                              • Figure 57: Destination of manufacturing export sales (£m), by enterprise size, NI, 2010-11
                                                                            • Survival rate of new business
                                                                            • Appendix

                                                                                • Figure 58: Number of calls to Money Advice and Budgeting Service, RoI, Q1 2008-Q1 2012
                                                                                • Figure 59: Number of new clients per year to Money Advice and Budgeting Service, RoI, 2008-11
                                                                                • Figure 60: Average hourly earnings, RoI and NI, 2008-11
                                                                                • Figure 61: Population, by age, RoI, 2006-41
                                                                                • Figure 62: Population, by age, NI, 2010-56

                                                                            Companies Covered

                                                                            To learn more about the companies covered in this report please contact us.

                                                                            SME Banking (Business Banking) - Ireland - November 2012

                                                                            £827.00 (Excl.Tax)