Mr. Dermot Gleeson:

The answer to this will take me a little time but I'd like to give it to you if I can. It was reported, as you say, at 27 July board and in the following terms: Mr X - I'm not going to use the words of the officials if that's okay - reported that in respect of broad property, building and construction sector AIB was in breach of the limit contained in the Central Bank's licensing and supervision requirements and standards. And he said that we had ... the limit was 250% of our own funds and we had gone to 260%. He indicated that the matter had been discussed with IFSRA, who did not regard it as a significant issue. IFSRA were informed that the breach was likely to continue. He suggested that other banks were also in breach. He then advised that the concept of sectoral concentration was under discussion at the committee of European banking supervisors as well as between the Irish Bankers Federation and the Central Bank of Ireland. The board requested this issue be pursued with IFSRA-----