Professor Philip Lane:

I prepared many numbers before coming here but I will have to come back to the Deputy with those ones. All I can say is that the way the banks under SSM, such as AIB, Bank of Ireland and so on, are regulated is called a joint-supervisory team, JST. The joint-supervisory team has officials in Frankfurt who are working jointly with the people here in Dublin and there is a lot of traffic between Frankfurt and Dublin, in terms of both telephone calls and meetings. The people in Frankfurt come here and vice versa. I do not think there is any shortage of resources being put into supervising the largest firms.

Since Matthew Elderfield's time, supervision in the Central Bank is organised under a model called PRISM, or the Probability, Risk and Impact System, which looks at the proportion of risk. Through another regulatory innovation across Europe, large banks such as AIB and Bank of Ireland have been named by the Central Bank of Ireland as "other significant institutions". They are so big - though not globally significant, such as JP Morgan, for example - that they are required to hold extra capital. We have announced extra capital ratios for those firms. Cerberus does not come under the Central Bank's supervision, except indirectly if it has-----