Mr. Gerry Cross:

The Deputy raised many important issues that we are engaged in. I will address two or three, then Ms McMunn will speak. This is not a one-for-one matter, where a bank leaves and is automatically replaced. Are we seeing forces of competition in play? Is the context in which this is taking place one where innovation and change are happening? That is important, not to take away from the Deputy's point. How are traditional banking services made available to all who need and want them across the country? The Department of Finance's view on banking considers such matters, including the availability of cash, which contributes to the banking review.

It is important to address why the capital requirements are the way they are. We recently published a paper on so-called risk-weighted assets, about the calculation of capital for mortgage lending. We set out clearly what is driving those risk weights. There are two components. One is the probability of something going wrong in a loan. The other is what happens if a loan goes wrong and what the losses will be. One can see from the paper that we are very consistent and completely in line with the European requirements in this regard. The fact that we had the crisis is relevant in Ireland, but it is becoming less impactful as we move further from it and our processes are improved.

On public banks, we will authorise, assess and supervise anything that comes our way that is within the remit of financial regulation. We do not have a negative view on that. It has simply not come to us.