Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

If the hierarchy was left as it is now, it would make no difference. The change being made is to give a preference to depositors of amounts over €100,000 so that they will rank below senior bondholders. There was concern among some member states that because senior bonds were being treated as higher on the hierarchy, that might affect the price of bonds and would increase interest rates.

A policy paper has been done on this by the Commission which suggests that it is only marginal. The Commission is briefing members before the discussion next week. The message is that their concerns are not well founded and that any affect would be marginal.