Mr. Bernard Byrne:

It is important to consider everything that has changed across the system. Ireland was not the only country to have a banking crisis. It was global. Most of the rules and regulations that started to change from an Irish point of view have effectively become European regulations at this point. As an institution, we are regulated out of Frankfurt and all the rules and regulations concerning how we conduct our business prudentially are set by Frankfurt. The rule book has changed completely. Every practice that we engage in now is likely to be different from it was ten years ago when the loans originated. This is 2016, so the last of those loans originated in 2006.

The level of verification and validation in terms of customers and SMEs is an issue that we need to address. The level of support given to provide assurance around larger credit and loans is significant. The level of property valuation that is required to support those positions is different. From a credit point of view, the marketplace bears little resemblance to that which existed in the early 2000s, which was quick and easy. It is not quick and easy now. In particular, a significant process is associated with collateralised lending.

Something that has not changed and is still a work in progress is the establishment of security. Where collateral is used, the process remains dated. How security for properties is registered is a national issue rather than a banking sector one. It probably has not changed much, but nearly all the other processes and procedures are different.