Credit provided by non-bank lenders tops 20bn in 2023 [Video]

Non-bank lenders provided €20bn in credit to Irish households and small businesses by the end of 2023, Banking and Payments Federation Ireland (BPFI) has said.

Analysis of Central Bank data by the banking lobby shows that non-banking lenders account for around 15% of outstanding credit, over half of which is made up of residential mortgages to homeowners (€8.1bn) and landlords (€2.2bn). 

Approximately a third of the value of new lending to SMEs and a fifth of the value of outstanding credit (€4.5bn) came from non-bank lenders at the end of 2023.

Furthermore, non-banks and specialist banks accounted for 72% of the outstanding value of personal asset finance, including car finance, valued at €3.5bn.

Non-bank lenders play a substantial role in the car finance sector through the provision of hire purchase and personal contract plans via car dealers.

They also offer credit cards, personal loans and asset finance and SME finance products such as business leasing, loan, mortgage and working …