A senior executive at AIB has told the Oireachtas Finance Committee that the bank does not need to sell its restructured loans.

Jim O'Keeffe, Head of Financial Solutions at AIB, said the bank had an overall adherence rate of 95% on their restructured loans.

"The adherence rate is currently running at over 95% and is one of the primary reasons why AIB does not see any necessity to sell treated or restructured customer loans," Mr O'Keeffe said.

The committee was told that 93% of distressed mortgage customers were meeting the terms of their resolutions.

AIB now has around 7,900 retail mortgage borrowers in the legal process for non-cooperation on loan repayments, according to supplementary information provided to the committee.

Around a fifth of those - or around 1,500 borrowers - are deemed to be re-engaging with the bank.

Mr O'Keeffe also said the bank was prepared to write down mortgage debt. "For its part, the bank is prepared to write-down debt where there is reduced affordability on the customer's part," Mr O'Keeffe stated.

AIB has reduced impaired loans by 78% to €6.3 billion as at the end of December 2017.

The head of financial solutions at AIB also told the committee that the bank does see a role for loan sales in the future.

However Jim O'Keeffe said the bank has not disclosed any information in regard to potential portfolio sales and would not go into that before the committee for reasons of commercial sensitivity.

"We haven't shared any information in regard to particular portfolio sales and I don't intend to get into the sale of portfolios today," he stated.

Mr O'Keefe said he was "crystal clear" that split mortgages held by the bank were not classified as non-performing loans under EU rules, and would not form part of any loan sale.

Mr O'Keeffe also refused to tell the committee today if a portfolio of non-performing commercial real-estate and buy-to-let loans, known as Project Redwood, exists.

Sinn Féin Pearse Doherty described Jim O'Keeffe's response to the question as to whether Project Redwood is in existence as "bizarre".

The AIB banker said the bank would divulge the information when it is taken to the board, however, AIB would have to go through any potential loan sale first.

Deputy Doherty asked if buy-to-let properties and family farms are included in the bank's loan books.

Mr O'Keeffe said the primary focus is on buy-to-let, commercial real estate, land and development, property and construction.

Permanent TSB executives also attended today's Finance Committee meeting.