Mr. Gerry Cross:

I will be pleased to respond and my colleagues may also wish to comment. The Financial Stability Board, FSB, which is the international G20 organisation, carries out an annual survey of shadow banking across the globe. We participated in that process for the first time two years ago, although we are not an FSB member. The Deputy is correct that the funds industry in Ireland is sizeable and this comes through in the figures reported by the FSB. While I do not have figures with me, the funds sector has continued to grow at a moderate pace, rather than exponentially.

Two crucial facts should be noted. First, because much of the so-called shadow banking sector in Ireland - others use the term "market-based finance" - is actually in the funds space, it is regulated. The risk profile of that must, therefore, be viewed in light of the fact that it is a regulated concept.

Second, the Central Bank has been very engaged in leadership ways, for example, the International Organization of Securities Commissions around risks and potential systemic risks in the funds sector. The work there is continuing but is moving in a good direction. The sense is that a good understanding is now developing of how risks might materialise in the funds sector. It is fair to say that this is in a good place and that our participation in the FSB exercises has been very much driven by the desire for us to be transparent about the size and nature of the Irish funds industry. We continue to participate. It is also worth noting that the interconnections between the shadow banking sector in Ireland and the domestic economy are also quite limited. My colleague might want to add something on that.