Ms Anne Marie McKiernan:

In all of the measures we take we constantly assess the risks we are seeking to close off to adequately protect members' funds and the stability of the sector. We judge that there is a risk that some members could potentially lose savings above €100,000. In aggregate, there is a very small volume of such savings. We recognise that the proposed cap of €100,000 gives very significant head room to credit unions because the average deposit is €4,000. We propose to put that limit in place, notwithstanding the reputational risk mentioned by the Deputy, because we are trying to reduce other risks across the sector. We judged that there was no impact on the business model of credit unions because such a small proportion of overall funding in the sector comes from deposits above €100,000. I also highlight the fact that, at sector-wide level, there are very significant deposits of some €11 million relative to the sector's lending of €4 million. A shortage of deposits is not among the structural factors weighing on the sector. We, therefore, felt it was an appropriate risk management response at this stage to close off a vulnerability, particularly in a period of heightened restructuring and transition. We would be open to reviewing it in time, if such a review were to become relevant and credit unions were able to show it was needed.