The manner in which Mr Haughey's account was treated by AIB was comparable to the way the accounts of many other people and companies who were in financial trouble were dealt with, a director of AIB told the tribunal.
Mr Denis Murphy, a board member since 1977, told counsel for the tribunal that the manner in which Mr Haughey's account was dealt with "was no more unusual than all the businesses that were in trouble . . ."
He said the fact of the matter was that from a banking point of view "a very good deal was done" in the settlement of Mr Haughey's debt.
Mr Murphy said he did not recall the figure owed by Mr Haughey or if the settlement he made had ever been discussed at the main board. It was not the business of non-executive directors to know about such problems, he added. However, he had attended a local board meeting where the settlement of the debt had been discussed.
"I'm not saying this was not a special one [account]. Of course, it was a special one, but it was being dealt with at the level it should have been dealt with."
Mr John McGuckian, a former non-executive director with AIB, said he was "very aware" Mr Haughey's account was troublesome and it was a priority of the bank to get rid of the account.
He said "it would not have been a foolish tactic to have geared up the interest rates" to encourage a difficult client to leave the bank. He suggested the retention of an outstanding debt of £110,000 on Mr Haughey's account was a ploy to stop the customer returning to the bank.
Mr McGuckian also said Mr Haughey's political position was a major factor in the settlement. He said: "It was not a good position for the leading financial institution in the country to have such a relationship with the leading politician in the country".
The tribunal was earlier told of the concerns of Mr Michael Kennedy, a former regional manager with AIB, about the securities guaranteeing Mr Haughey's loan.
He read to the tribunal a 1979 note in which he had written: "As I see it we're not covered. If he died, where are we? Half proceeds plus £350,000 is all we would get out of Abbeville. Should we send him a guarantee form or something?" Although he did not recall writing the note he said he was quite obviously concerned about the value of the security attached to Mr Haughey's £1.1 million debt.