Mr. Bernard Byrne:

A formal application is an application in writing using our application form. The benefits of applying in writing are that we are provided with all of the information, and if somebody does not like the decision made he or she is capable of appealing it internally to AIB or to the Credit Review Office. If somebody does not make a formal application there is no process by which he or she can make an appeal. We strongly encourage everyone to make a formal application. To the end of September 25,000 formal applications were made to AIB of which 92% were approved, which is approximately 23,000 applications.

With regard to informal applications, we ran a trial for a period of time. It was a spreadsheet-based approach on a branch by branch basis to try to track how many applications did not proceed from informal to formal inquiry. It was very much a manual process to try to get a sense of the issue referred to by the chief executive. Our sense is that the number could be an extra 10% to 20% so it could mean our approval rate is below 90%. It is an informal process and, as has been indicated, our objective is to try to get to a point where all applications are made formally. We clearly suggest that if everyone with an interest in applying for credit formally applied the application approval rate may fall. We believe this would be all right because it would mean a formal process was in place through which everyone would know what was happening. In every forum where we have the opportunity to do so, we consistently encourage people to make a formal application because it is the only way they can appeal our decision if they believe it is incorrect.