Joe Higgins (Dublin West, Socialist Party) | Oireachtas source

Yes, thanks. Mr. Torpey, if I could address my first question to yourself, please, and I'd like to refer to core document, Vol. 2, page 5, and it relates to the inspection by the regulator of Ulster Bank in February of 2006 and in the subsequent report that you received from the regulator under the heading "Reporting of Credit Risk", the following is said:

The inspectors are concerned that there [are not ... there] does not appear to be any evidence of credit risk reporting to [the bank of ...] the board of [Ulster Bank Ireland] on a periodic basis. Credit Risk reporting would include, inter alia, an overview of the quality of the loan book, the level of provisions and a summary of the level of exceptions which have been approved.

And in relation to those exceptions, Mr. Torpey, the regulator says:

The inspectors noted a high level of exceptions to policy on the [residential mortgage lending] portfolio - 27% of approvals in 2005 were exceptions. In addition, while a list of Debt Service Ratio ... and Loan To Value ... exceptions was provided to the inspectors, there was no evidence that these exceptions to policy (together with a rationale for permitting them) are being reported to the board.

Mr. Torpey, was there a free-for-all in the lending in Ulster Bank at this stage, perhaps arising - I suggest you confirm or deny - from pressure to extend the business of the bank in relation to the type of targets that had been set for the bank, in terms of growth, profits etc.?