Mr. Cathal Sheridan:

That is probably not the case. There is the bank recovery and resolution directive, BRRD, structure and the single resolution mechanism, SRM, structure into which we are entering. The purpose of the SRM is to set up a fund to which the banks contribute. When a bank goes into resolution, one goes through the waterfall - the cascade - and the bail-in mechanism, bailing in all the subordinated debt, junior debt and senior debt, and then one uses the resolution fund at a European level. In the first couple of years there will be a gradual mutualisation. In other words, it is compartmentalised for the first eight years. One goes to the Irish compartment first and if there is still a deficit one goes to the other compartments – the mutualised elements of the compartments. In the first year it is 40% mutualised and in the second year it is another 20%. By the end of year two one has 60% mutualisation. One has access to a great source of funding from the mutualised compartments of other member states, and that will gradually be mutualised fully after eight years. After eight years there is a proposal to develop a common back-stop for the single resolution fund itself.