Mr. Aidan Carrigan:

We have to take this issue in the context of the broader developments in the financial market. Within Europe there is a view, based on looking back at the financial crisis, that there has been over-dependence on purely bank related financing of the economy. There are comparisons with the United States. Some 20% or 30% of the economy of the United States is actually bank financed, while the rest is financed from what one might call shadow banking but which we call alternative financial sources.

In Europe it has been the other way around and 80% has been bank financed, whereas only 20% has been supported by finance from non-bank sources. There is huge potential for this sector, if properly regulated, to provide the kind of funding which has not been made available through the equity markets, corporate issuance markets and investment markets. There is significant potential for these kinds of market, which is why I made it clear in my opening statement that we were very much in favour of proper regulation of this sector in order that it could play a greater role in supporting the economy.

I was asked twice about the size of the sector in the context of the Irish Financial Services Centre and apologise for not replying. I do not have the exact figures to hand, but we can access them, if necessary. The funds industry is a huge part of the success of the IFSC and the international financial sector. It underpins a huge part of the employment success we have achieved. Funds administration work is hugely significant. Within it, the money market fund element is very significant. It would be very damaging to the financial services industry in Ireland if there were to be terminal damage to the money market funds industry in Ireland. We are very concerned to protect it.