SSISI Meeting on Credit for SMEs

Some readers may be interested in going along to this talk (“Credit Access for Small and Medium Firms: Survey Evidence for Ireland” by Martina Lawless and Fergal McCann) at the Royal Irish Academy this evening at 6.

18 replies on “SSISI Meeting on Credit for SMEs”

@ David O’Donnell

The authors are making a few more edits, but the paper should be available by the end of next week.

@The Editor Irish Times

[Note this headline – IMPROVES … then read the rest of this otherwise useful update on CBI data ………. and get a grip!]

“Lending to businesses improves SUZANNE LYNCH

Figures published by the Central Bank this morning indicate a relative improvement in the lending conditions for businesses.

Lending to businesses continued to fall in September, but at a lower rate, with business lending declining by 1.4 per cent in the year ending September 2011, compared to an annual decline of 2.5 per cent in August.

On a monthly basis, loans to businesses increased by €594 million during September, following a decline of €436 million in August, though the increase was driven by short-term loans including overdrafts, rather than term loans.

While loans with a maturity of up to five years did increase, rising by €66 million during the month, loans with an original maturity of over five years dropped by €20 million.

Short term loans increased by €548 million during the month, following a decline of €353 million in August.

Lending to businesses averaged €105 million in the three months to the end of September, compared with an average of €22 million in the three month period to end-August.

Lending to households fell by 4 per cent in September compared to a year earlier, though the rate of decline was in line with the previous month., showing that the pace of decline appears to be stabilising. Mortgage lending was down 2.5 per cent, while lending for other purposes decreased by 8.9 per cent.

Meanwhile deposits in Irish banks continued to decline. The annual rate of the overall decline in Irish resident private-sector deposits was 10.5 per cent at end-September 2011, compared to 10.4 per cent at the end of August. However, while there was an underlying decline of €2.7 billion in Irish resident private-sector deposits during September, this was mainly due to moves by financial intermediaries rather than Irish households. Deposits from Irish resident households increased by €485 million during September., the largest net monthly increase since December 2010.

However, this was offset by a decline in deposits from businesses, which fell by €420 million during the month.”

“Figures published by the Central Bank this morning indicate a relative improvement in the lending conditions for businesses. Lending to businesses continued to fall in September, but at a lower rate

Classic IT spin. They do the same with house prices. Figures indicate a relative improvement in house prices whose terminal velocity is now lower than the rate of decline in 2010. But they are still falling…

I think the decline of deposits can be simply explained by the lack of credit / deposit production , people are just paying down the money supply.
Why we have accepted that bank deposits should constitute the primary money supply in this envoirment is beyond me.
Sure the cute hoors took their money abroad 2 years ago , but now the zoo animals are stuck in a deflationary cage of their masters making.

PS good crosstalk RT debate about the future of the euro today – with two very enlightened bankers.
Can’t think of one guys name but he had MMTish like views when he visited here last month or so and appeared on the VB show.
He stated that the Irish population fears the “Germans” want us next on the austerity chopping plate.
This Euro thing is getting stranger and stranger – going to China begging for FX reserves ?
You just print the stuff baby.
It seems the euro was designed to be completly independent and indeed destructive of European physical Economies both during the inflationary & now deflationary phase.
They (the elite) just want it as a global reserve currency and just like how the post 1971 dollar destroyed Americas wealth generating capacity beyond New Yorks hinterland – this euro thingy is a giant wreaking ball on european innovation.
Sad very sad – but you have to admit the guys who come up with plans to take over the world are very very good.
Ireland is a large lab rat – always was.

Marshall Auerback – a interesting guy.

Jeffrey Sommers – also talked about the strange rentier culture built up over the last 20 years especially in Europe – creating huge economic inefficiencies.

The ultimate goal seems to be extraction rather then net wealth creation.
Where does this end ?

“most of our accounting systems are incorrect”
“its a technical problem”
“life support”
“iron triangle corruption – the relationships between bureaucracy ,politics & lobby groups”
“Our culture is based on depletion”

Warren Pollock is probally CIA but that does not mean he is not right.
We have all skin in the game of survival.
We are witnessing a system breakdown because our accounting is faulty.

Limited liability corporations of the Elizibethan era & beyond can only work in a world of expanding resourses.
We don’t have that now.


“This Euro thing is getting stranger and stranger – going to China begging for FX reserves ?
You just print the stuff baby.”

Out of the question. Until the situation changes and they change their minds. The whole crisis is a series of tactical retreats and red lines ignored. IMF involvement in Greece. Out of the question. Bond writedowns. Over our dead bodies. ECB bond purchases. Forget it.

What scares me is that they see money as more then a token , more then a utility – its sacred somehow.
Meanwhile the real physical world decays around them because they do not add net Real wealth to the system.

The is typified by the ECBs 2% inflation doctrine – sure the price of goods and services outside credit dependent assets have been stable over the last 10 years but wages have declined dramatically.
This means that real inflation through wage deflation has shot up – and yet no dramatic capital increasing projects has been attempted in Europe for 20 years.
At least the bankers in France until recently did not s£$t in their own nest – now they are defecating everywhere.
Its shocking.
The accounting system is wildly dysfunctional.
Sure have austerity if you also build capital – but whats the point of austerity if you just use the smaller & smaller surplus for consumption.
You just die a slower death.

@ Dork

“Limited liability corporations of the Elizabethan era & beyond can only work in a world of expanding resources.”

I went to a talk recently on insurance for construction and machinery .
The insurance works on the basis of trust. If the machine is known to be faulty already, claims can’t be paid. Gross negligence cannot be covered. Say someone runs the machine at 3 times normal speed and it breaks down. Forget it.

Apply those principles to the environment. There isn’t enough money in the corporate sector to compensate for the damage that has already been done . The whole system is insane.

In Europe they have destroyed core capital appreciation in natural utilties such as the state sector power companies – they have cut down the forest and now expect forest dwelling monkeys to walk upright.
Even corporations need a rich habitat to hunt withen – they have made vast profits over the last 3 decades because the herbivores are getting weaker and weaker & therefore easier to kill – but what happens when all the prey is gone ?
Can Hyenas eat grass ?

“the strange rentier culture ”

Rentier used to be an insult. Same with speculator.
In 1981 Brideshead Revisited was a view into a vanished world.
Now it’s all back.


Yes seafoid – where did the Chinese get their FX reserves ?
We gave it to them – why does Europe not want to give them more ?
We don’t want them back.
European representatives are not acting in Europes interest – its all very very strange.

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