The Credit Review Office is urging businesses who have had credit applications unfairly rejected to contact them.

A new Central Bank report says the level of loan refusals in Ireland is the 2nd-highest in the Euro area.

25% of Irish firms are being turned down compared to a rate of 1-in-28 in Germany.

Sinn Fein is calling on the government to put pressure on Irish banks to lend to businesses.

TD Peadar Toibin says dysfunctional Irish banks are failing small businesses.

“The whole policy so far of this government has been around the need to secure the banking industry” hen said.

“In reality the banking policy of the government needs to change – it needs to be around securing the real economy”.

“That’s the economy where people open shops, sell products, manufacture, create services and create jobs”.

“But those people are being completely let down” he added.

While AIB says it is a matter of major concern to the bank that there is a perception among many Irish SMEs that they cannot approach banks for credit.

AIB is strongly encouraging firms to contact the bank about new lending and refinancing saying it is acutely aware of the imperative to provide credit to fuel businesses.

The bank says it exceeded its SME lending target of €3 billion last year and is 17% ahead of its year to date target of €3.5 billion for 2012.

So far this year AIB says it has sanctioned 92% of formal applications.

John Trethowan is the head of the Credit Review Office.

He told Lunchtime here on Newstalk his office can review funding requests that have been rejected.