Mr. Ed Sibley:

I will just supplement Professor Lane's comments a little. I very much welcome the engagement we have had. It is important to get underneath the covers a little to understand some of the mechanics here, so the engagement has been very positive. We need to differentiate a little between, say, a large, internationally active firm that was used to operating its own internal models deciding to start offering to operate in Ireland, and a start-up entity which may not have that sophistication and experience. Yes, on an initial lending into Ireland, one would expect that an entity would have to apply standardised weighting in either circumstance, but I do not think that is necessarily unreflective of the risks in the Irish mortgage market today. An entity would have a period during which it would need to build up the data to show it was capable of tailoring its own models, its own existing systems, to enable them to come up with an accurate and appropriate risk-weighting based on the lending it was doing. That would be the case with an existing firm coming in. A newer start-up bank will typically have a longer path to travel to build up that capability in any jurisdiction and is likely to be unstandardised for a good period in any jurisdiction.