IE
Bank of Ireland is definitely recruiting business bankers (and so is AIB)
14 July 2010
So, the Irish government has decided to take a hardline with Ireland's two largest banks around lending to SMEs, outlining plans that require each to provide €3bn a year to the sector. AIB and Bank of Ireland are already building their teams in anticipation of this.
Ireland's large domestic banks have been criticised for supposedly over-constrained lending practices to SMEs – something both they and industry bodies deny – which is hampering economic growth.
Finance minister Brian Lenihan has unveiled plans to compel BoI and AIB to lend a combined €12bn to SMEs over the next two years as they are "key drivers of job growth".
The upshot of this move is that the banks are defrosting their headcount restrictions and will be required to bolster their business banking functions.
"A comprehensive programme in support of our growth strategy, including further training for existing staff and the recruitment of additional experienced business bankers, is already underway," says Mark Cunningham, director, Bank of Ireland Business Banking.
The hiring spree is unlikely to be huge – we understand BoI plans to add around 12 bankers – but it represents a definite shift in attitude towards recruitment.
Recruitment sources also tell us that AIB is making moves to hire for its business banking functions, but is still a little more reluctant than BoI to commit to additional permanent headcount.
"We have seen movement among candidates within business banking, with increased demand for lending professionals with a particular focus on the SME sector," says James Hayes, manager – banking and financial services at Robert Walters in Ireland.
The Irish Small & Medium Enterprises Association has welcomed the announcement, but remains sceptical about banks' commitment to lending.
"The banks will attempt to ‘slither’ out of their commitments on SME lending," said ISME chief executive, Mark Fielding.
"Their total lack of honesty on the Nama project, for instance, and their generally deplorable treatment of the SME sector, would raise serious concerns about their bona fides. The government must insist on Central Bank oversight to ensure that banks honour their commitments," he added.
