Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

The originator has to be a bank though. It still needs to be permissible for a bank to securitise its loan book in this way, regardless of whether it is made up of commercial or residential mortgages. Under the capital requirements regulation, the bank retains a portion of the risk. It is difficult, therefore, to see why a section 110 vehicle would try to step into this given that it would not satisfy what it is trying to do. It would not be able to do this. First, it is not a bank originating. Second, in terms of what has been attempted by the section 110 vehicle to date as far as the profit participating note is concerned and how it sweeps out, it would not be able to do it in this way because of the capital requirements regulation. For the banks, this is not about making super-profits, it is about managing risks. It needs to continue in place as part of their securitisation regime.