Mr. Sean Murray:

Recognising that a problem exists is the first step in addressing it. As the CEO of a credit union, I recognise the challenges involved in assessing a significant proportion of SME lending. That is why I have noted those challenges in my presentation. There are, however, international opportunities for credit unions and banks to understand the business models that would be involved.

It is fair to say that the solution a credit union might present may not look at the next Google. It is important that the appropriate types of finance are used for the appropriate enterprises as well. I would not try to say that credit unions could achieve a level of expertise and experience in assessing and underwriting loans that might lead us to the next Google, but we certainly would be in a position to support indigenous SMEs. It also comes down to the level or risk and the level of finance required. Where one is looking at significant amounts to invest in a business, again one has to look at what is appropriate. As I understood the brief coming in this morning, it was to talk about the smaller level of lending that credit unions do and are familiar with.

One of the unique features of credit unions is that fact that we are local and our knowledge of the people to whom we are lending. While it is important to understand the business and the sector, it is equally important to understand the person one is lending to, his or her character and whether he or she can make it a success.