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

Deputy Arthur Spring is developing the point I am making. On the ESM, the statement of 29 June envisaged that when banking supervision was put in place, something along the lines suggested by Deputy Spring will happen. The Irish banks are fully recapitalised under stress conditions. Within the current property values, the banks are adequately capitalised. When Basel III regulations on bank recapitalisation come into effect, that may change. It will not change because of new difficulties in the Irish banking system. Basel III is further down the line.

Do the committee members think a fund in Europe, designed as a rescue fund, is the best entity to run an Irish bank? It has no experience of running a bank. Its function is to raise money on the markets and give it out to countries in difficulty. We must consider that point and the arrangements-----