AIB and Bank of Ireland yesterday said they expected to reach the Government’s lending target of €3.5 billion for small and medium-sized businesses (SMEs) this year despite the Credit Review Office reporting a tightening in credit conditions in 2012.

The ninth report from the Credit Review Office, headed by John Trethowan, said more could be done to assist some businesses to obtain loans despite both banks reporting an 80 per cent approval rate for loan applications. It also called on businesses seeking credit to ensure a formal written application was made.

Since the establishment of the Credit Review Office, 96 credit refusals have been overturned, resulting in a supply of €9.6 million in credit to these businesses.

Meanwhile, farmers were yesterday encouraged to immediately appeal to the office if refused a bank loan. Minister of State for Agriculture Shane McEntee said: “I encourage every enterprise that has a need for credit to apply in writing to the banks, and if they are unhappy with the decision to immediately appeal to the Credit Review Office, where over 60 per cent of cases are overturned.”