Ms Patricia Callan:

That is the real danger because as the economy starts to pick up we need a banking sector that can keep pace with it. There is no evidence that is the case. While the microfinance fund, the loan guarantee scheme and the money that is being released from the National Pensions Reserve Fund to leverage money similar to the State-backed investment bank are all good initiatives around the edges business banking is €30 billion. If we do not have the three main banks actually doing their job, we will never solve the problem. It is a much more fundamental problem. We need to get in behind the branch level decision-making scenario and figure out the barriers and the problems. I know a great deal of work has been done. We are working with the Department of Finance on this issue. These are fundamental issues and will not go away. The problem is not being solved. It is just evolving.

Let me flag the emerging issue of rates. It used to be a case that people would take the money at any cost but as the banks strive to get back to profitability, which they should do, we are beginning to see the price of money increase and that will ultimately damage our ability to compete as well. Money still has to be number one on the radar. If one runs out of money one is out of business and there are no jobs.