Ms Anne Marie McKiernan:

All financial sectors have different risks, issues, challenges and future objectives and are regulated accordingly. Just as a one-size-fits-all approach is not taken within the credit union sector, a one-size-fits-all approach is not taken across the financial system. While risk weighting might be appropriate in some sectors - I acknowledge that the Senator has mentioned it in relation to banking - we look instead at the practices in relation to reserves in other credit union jurisdictions, particularly those where the type and size of credit union and the business model are similar to what we have in Ireland.

As I said earlier, the practice internationally in credit union sectors with the relatively simple or more homogenous business model we have in Ireland has been to have a flat rate reserve ratio rather than a risk-weighted rate. We can provide further information on this if needed.