Mr. Ed Farrell:

Whether the bank is charging a small amount to mind it or paying a small amount of interest, to go back to Senator O'Donnell's point, it is the 10% capital requirement. If they take in an extra €10,000, an extra €1,000 has to be reserve capitalised by the credit union. Their own earnings are their only form of capital. They are not allowed to inter-bank borrow, borrow on markets or issue bonds. It is a full asset. There is no risk rating. Our capital regime is much higher of a requirement than the banking one would be so we have to have a 10% reserve on our total assets. The banks have to have a 10% reserve on a risk weighting of their assets, which in effect would probably be about half our capital requirement. In terms of the extra moneys, which we are only going to take in from the people as the bank branches close in the towns, if we are going to put it on deposit with a pillar bank or into a Government bond, why make us have a 10% capital reserve requirement on it? The money is going into a risk free environment so we could mind the money for the people at a very small or zero interest rate, and they understand the interest rates as well - if that much greater capital requirement was not on us and the money it is going into is risk free. We could mind the money. We would not make money on it but at least it would stop the people having to go elsewhere, which goes against our grain, and theirs.