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

Cyprus was a very difficult situation. It differed from any other banking situation in Europe. I do not think it should be used as a template for action in Europe. I do not want to use Cyprus as the starting point for this. I am saying that if banks have to be resolved because they are bust and they are not going to trade again, that is a different situation from the situation of a bank that requires additional capital.

I have described where the sources of capital would be. In the case I have outlined, I would like to have circumstances where a bank could draw on the European Stability Mechanism before going next or near depositors. Our discussion on Tuesday will improve the position of depositors because those holding more than €100,000 on deposit currently do not have any legal right to protection. By changing the order of priority and giving depositor preference, we will improve the position of depositors. There is disagreement about this and for this reason I am not sure where it will end up.