Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank Ms Motherway for her presentation. I have two questions in respect of her oral submission. The first of these relates to the analysis she put forward to the effect that a solvency problem could be triggered by a liquidity issue as a result of the high concentration of the deposit base within a particular group of depositors. I am unclear as to what Ms Motherway believes should be done about this core issue. As a result of what has occurred in other areas of the economy, we are, tragically, all too aware of what can happen when things of this nature go wrong. Will Ms Motherway outline her specific ideas on what can be done to tackle this issue?

My second question relates to a phrase Ms Motherway used when referring to the model for regulation. She stated that if a model of self-determination is used, then individual credit unions are allowed to set their own appetites for risk. How realistic and credible is such a model, particularly in view of the fact that - as we have seen in the past - if bodies are allowed to set their own appetite for risk, the consequences of this go beyond such bodies when things go really wrong?