Bank Lending to Irish Businesses

Bank Lending to Irish Businesses

Explanatory Notes

June 2026

General

Bank lending to Irish Businesses (Tables ‘Ana.1 Loans to Irish Businesses’ and ‘Ana.2 Loans to Irish SMEs’) contain data on the lending of within-the-State offices of credit institutions, where the counterparty of the credit institution is a private-sector enterprise, irrespective of its legal form (corporation, partnership, sole trader etc.). The data are quarterly in frequency.

In June 2026, the Bank lending to Irish Businesses publication replaced the SME and Large Enterprise Credit and Deposits publication. The latter had sourced data from the SQ2 statistical returns. These returns have been discontinued so as to reduce the reporting burden on credit institutions. The new release sources data from the AnaCredit and RS3 (SBS table) returns. As a result of these changes, there is a methodological break in the series.

Methodological differences between the Bank lending to Irish Businesses publication and the SME and Large Enterprise Credit and Deposits publication include the following:

• The SME and Large Enterprise Credit and Deposits publication provided data on total credit provided. It therefore included securities provided and loans provided to Irish Businesses. The new release only includes loans provided to NFCs, as this is the primary source of credit institutions funding to Irish businesses.

• The economic activity classification varies for two main reasons. Firstly, the new release classifies the economic activity according to the main type of activity of the business. The previous release classified business economic activity in accordance with the main purpose of the loan. Secondly, the new release uses NACE 2.1 which is most recent update by the European Commission of the statistical classification of economic activities (NACE). The previous release classified entities according to NACE 2.0. See here for further details on NACE 2.1.
  

Definitions:

Banks: In this release, banks refer to credit institutions. Credit institutions, as defined in Community Law, are undertakings the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account and/or issue means of payment in the form of electronic money. The reporting population which is covered in these tables are credit institutions resident in Ireland. A resident office means an office or branch of the reporting institution which is located in the State (the Republic of Ireland). These are: institutions incorporated and located in the Republic of Ireland, including subsidiaries of parent companies located outside the Republic of Ireland; and branches of institutions located in the State that have their head office outside of the Republic of Ireland. Reporting institutions report the data in respect of their resident offices only.

Irish: Irish business refers to businesses officially located in Ireland.

Businesses: These are defined as non-financial corporations, as well as, unincorporated enterprises, sole-traders and partnerships.  It should be noted that in National Accounts, unincorporated enterprises, sole traders and partnerships are all categorised in the household sector in accordance with ESA 2010 classification rules.

Small and Medium sized enterprises (SMEs): Enterprise size is classified according to the definition in  Commission Recommendation 2003/361/EC. Small and Medium-sized enterprises (SMEs) are made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding €50 million, and/or an annual balance sheet total not exceeding €43 million. In accordance with Recommendation 2003/361/EC enterprise size classification takes ino account whether an entity is “linked”. Enterprises are considered linked if they share a direct relationship involving majority voting rights, board control, or dominant influence. Because they function as a single economic unit, such companies must fully aggregate (100%) their staff headcounts and financial data to determine their SME status, rather than just a proportional share. 

Outstanding amounts: This is defined as the principal amount outstanding at the end of the reporting reference date, including unpaid past due interest but excluding accrued interest. The outstanding nominal amount is reported net of write-offs and write-downs as determined by the relevant accounting practices.

Quarterly transactions: Calculated from quarterly differences in outstanding amounts adjusted for reclassifications, other revaluations, exchange rate variations and any other changes which do not arise from transactions. If 𝐿𝑡𝑂𝐵𝑆 represents the outstanding amount on the credit institutions’ balance sheet at the end of quarter t; 𝐸𝑡, the exchange rate adjustment; and 𝑉𝑡, the other revaluation adjustments, the transactions value in the period, 𝐹𝑡, is defined as:

New Lending: New credit facilities drawn down over the quarter. This includes the outstanding amounts for instruments that are drawn for the first time during the quarter, as well as additional drawdowns from existing credit facilities. It therefore represents the drawing down of credit, as opposed to, new loan agreements.

Annual Growth Rates: The Growth rate of credit refers to the rolling four-quarter rate of change, calculated using quarterly transactions so as to avoid the impact of revaluations, loan transfers, and other factors that do not related to the drawing down or repayment of loans.

Interest Rates on Outstanding Amounts/New Lending:  Interest rate statistics are presented as the weighted average rates agreed between credit institutions and customers. The reporting population for interest rate statistics are those credit institutions with a significant level of lending or deposit business with households or non-financial corporations. All other SME statistics are collected from the full population of resident banks. Although the interest rate data are collected from a sample of institutions and the coverage of the SME market is very high, gross new lending volumes underpinning the interest rates and volumes data will not match. The reporting population is monitored under Regulation ECB/2014/30.

A list of the reporting population is available on the Central Bank of Ireland website.

Appendix 1 – Economic Activities and Nace Definitions: