Dr. Colin Hunt:

I will focus on the mortgage market, which is the Deputy's key area of concern. The overall risk weight density of the bank's balance sheet is a reflection of history, but also of the business mix in which we are engaging. In terms of mortgages, we build these models and feed in the data, but we do not have overall responsibility for the risk weights that are deployed. That is external to us. We are handed the risk weights that we use. Over time, though, they should moderate. I have a clear and strong desire to see them reduce. As they do, we will see a compression of the margin of spread relative to other countries in the EU.

I want to hold an appropriate amount of capital. I am conscious of the fact that the banking sector in this country has an order of density that is very high relative to the European average. With the continuation of appropriate, sustainable and prudent lending policies, that risk weight should reduce, which will translate into a compression of margins, or it should in any event. I would be eager for it to so do.