Irish SME property exposure: what do we know?

Fergal McCann () and Tara McIndoe-Calder ()

No 08/EL/14, Economic Letters from Central Bank of Ireland

Abstract: An overhang relating to the pre-crisis property investment of Irish Small and Medium Enterprises has been identified as a potential drag on a recovery in employment, investment and output. This Letter aims to provide information from survey and loan-level data which can help to quantify the extent of firms' property-related borrowing. Survey data show that a minimum of one fifth of Irish SMEs have direct exposure to property debt. Loan-level data show that at least 10 per cent of firms with bank debt have exposure to property investment at the same bank, with this figure rising to 16 per cent when including Buy-To-Let mortgages for a subset of the data. Data on loan default suggests that property-related borrowing has had a detrimental impact on firms: SMEs with property-related borrowings have a loan default rate of 43 per cent, compared to 23 per cent for those without property exposure.

Date: 2014-08
New Economics Papers: this item is included in nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://centralbank.ie/docs/default-source/publica ... 4-no-8.pdf?sfvrsn=10 (application/pdf)

Related works:
Journal Article: Irish SME Property Exposure: What Do We Know? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbi:ecolet:08/el/14

Access Statistics for this paper

More papers in Economic Letters from Central Bank of Ireland Contact information at EDIRC.
Bibliographic data for series maintained by Fiona Farrelly ().