Mr. Bernard Sheridan:

This is a very good question. This is a challenge and what we have tried to do is move away from focusing purely on the inputs into the process, namely, the information that the banks give us in terms of the costs associated with providing the services. This is a key element, but we have moved to looking at the outcome and the impact on personal customers. In 2011, we published some research we conducted and we also published four different profiles of typical usage of current accounts. We assess any new notification in respect of increasing charges on current accounts in the context of the impact it has on those profiles. This is only one element of what we do.

Based on this, we get the costs associated with running a current account. These range from €100 to €300. In the circumstances where it costs up to €300, the profile we used includes circumstances where the customer incurs quite a number of out of order charges and surcharge interest on unapproved overdrafts and the like. We have noticed these types of charges push up the annual cost and that when we approve these charges, they have a big impact on people who are struggling. Therefore, we have tried to keep those charges at a reasonable level. In order to know whether we are doing that, we have looked at what happens in Northern Ireland and the UK and what they charge or are allowed to charge. Our charges are quite a bit lower than what is allowed in the UK in that respect.