OREANDA-NEWS. The Central Bank of Ireland today publishes a new economic letter: ‘The use of personal guarantees in Irish SME lending’ (Economic Letter Vol. 2015 No. 6).

This letter describes the use of personal guarantees in Irish SME bank lending. The letter examines the prevalence of such guarantees, highlighting a number of SME characteristics that affect the probability of personal guarantee use by banks. The impact of loan value, industry sector and the presence of other forms of tangible business collateral are also considered.