Mr. Kevin Johnson:

I should state first that I certainly do not think that credit unions need stronger regulations. We have plenty of them at this stage. As the Chairman rightly said, the 2012 Act has been commenced in two stages so far. Practically all its sections have commenced. Stringent regulations govern credit unions.

Deputy Lawlor referred to boards. In areas such as risk management, compliance and internal audit functions, there are direct reporting lines to boards. A greater onus of responsibility is placed on boards. Terms are being applied and there are exclusions as to who can serve on boards. There is therefore a set of rules around the governance of credit unions that goes well beyond what one will find in other financial institutions. That has been very well addressed. Credit unions are also subject to regular inspections by the Central Bank. They are called "prison inspections". So there is a high degree of oversight, internally and externally, of credit union operations. I hope that addresses any concerns that the committee might have in that area. The regulatory regime has changed significantly in the past 12 months.