Final Reminer: IEA Deadline Feb 11th

The 32nd Annual Irish Economic Association Conference will be held at the Central Bank of Ireland, New Wapping Street, North Wall Quay, Dublin 1 on Thursday May 10th and Friday May 11th, 2018. Gerard O’Reilly (Central Bank of Ireland) is the local organiser (gerard.oreilly@centralbank.ie).

The ESR guest lecture will be given by Professor Wendy Carlin (University College London and the CORE project) and the Edgeworth Lecture by Professor Olivier Blanchard (MIT and PIIE).

The Association invites submissions of papers to be considered for the conference programme. Papers may be on any area in Economics, Finance and Econometrics.

The deadline for submitted articles is the 11thof February 2018 and submissions can be made through this site.

Central Bank SME Market Report 2017 H2

The Bank’s SME Market Report for the second half of 2017 was released this week. The report can be found here.

Key results from the report include:

  • Annual gross new lending to non-financial, non-real estate SMEs in Q3 2017 is 24 per cent higher than a year ago.
  • The SME lending market has become more concentrated in the last six months, with fewer banks holding an ever larger market share.

  • The share of SMEs in Ireland reporting they did not apply for bank loans because of sufficient internal funding was 50.4 per cent in September 2017.

  • SME loan rejection rates in Ireland have increased to 13.9 per cent in September 2017 from 8.2 per cent in March 2017.

  • Interest rates for SME loans stood at 5 per cent in July 2017, high in a European context.
  • When scaled relative to domestic demand, new loan issuance to SMEs in Ireland is very low compared to European comparator economies.
  • The share of SMEs transitioning into default between the period December 2016 and June 2017 is 2.4 per cent. The highest transition rates reported in the Wholesale/Retail sector (2.9 per cent) and the South-east (3.4 per cent).

We have published the data behind each chart for the first time. The spreadsheet can be found here.

Irish Economic Association 2018 Conference

Irish Economic Association Annual Conference 2018

https://iea2018.exordo.com

http://www.iea.ie/

The 32nd Annual Irish Economic Association Conference will be held at the Central Bank of Ireland, New Wapping Street, North Wall Quay, Dublin 1 on Thursday May 10th and Friday May 11th, 2018. Gerard O’Reilly (Central Bank of Ireland) is the local organiser (gerard.oreilly@centralbank.ie).

The ESR guest lecture will be given by Professor Wendy Carlin (University College London and the CORE project) and the Edgeworth Lecture by Professor Olivier Blanchard (MIT and PIIE).

The Association invites submissions of papers to be considered for the conference programme. Papers may be on any area in Economics, Finance and Econometrics.

The deadline for submitted articles is the 11thof February 2018 and submissions can be made through this site.

Conference on Exchange Traded Funds

The Central Bank of Ireland will be hosting a Conference entitled “ETFs – Stability and Growth” on 29 November 2017 in the Convention Centre Dublin.

Are ETFs still the safe, simple, transparent product they are understood to be? Is the ETF structure appropriate for any type of product? Should there be limits? What impact do ETFs have on their underlying market and what liquidity concerns are relevant and valid in an ETF context?

Participation is free of charge and you can register your interest in attending by emailing ETF@centralbank.ie

Final details will be available on our website.

We look forward to seeing you and to engaging in a frank and open discussion on ETFs!

Developments in enterprise credit in Ireland

The Bank published the 2017 H1 edition of the SME Market Report last week.

Highlights from the report include:

  • Gross new lending to non-financial, non-real estate SMEs continues to grow. Annualised new lending to Q1 2017 was €3.6bn, a 32 per cent increase since Q1 2016. By way of context, between 2010 and 2013 this number ranged between €2bn and €2.5bn.
  • Despite this growth in new lending, the outstanding stock of credit to SMEs continues to contract. In Q1 2017, the stock of SME credit declined to €16.6 bn, down 8.2 per cent from the previous year. This reflects the fact that loan repayments, loan sales and liquidations are still more than offsetting new lending flows.
  • The SME lending market remains highly concentrated, with the market share of the three main lenders in new bank lending flows being 82 per cent.
  • The current application rate for bank finance is 20 per cent, which is lower than at any point since 2011. However, the share of these applications going to new loan and overdraft facilities continues to grow, while the share going to renewal and restructuring of existing facilities continues to fall.
  • The rejection rate on SME loan applications has risen slightly in the last year for Micro and Small firms, but continues to fall for Medium-size firms.
  • The default rate on SME loans in Ireland is currently 18.7 per cent. This rate is highest in the Construction and the Hotels and Restaurants sectors, while it is lowest in the Agriculture, Manufacturing and the “Other Community, Social and Personal Services” sectors.
  • Irish SMEs continue to pay a significantly higher interest rate on bank credit than other euro area SMEs. The premium paid on small versus large loans in Ireland also continues to remain significantly higher than that in comparator countries.

Link to the report can be found here.