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

If we take the direct as opposed to the retroactive recapitalisation of banks in the first instance - it must be remembered that the processes for both will be somewhat similar - if some unknown bank in an unknown country in the eurozone gets into trouble and if, as the Deputy outlined earlier, the bail-in model is followed, with shareholders being dealt with first, followed by junior and senior bondholders, corporate depositors, people with personal deposits above €100,000 and so on, it will be at that point that the independent resolution funds which are pooled can be drawn on. Beyond this again there will be access to the ESM. In general, the assets will continue to be bailed-in until the hole in the bank's finances is filled. If it is small discrepancy, the bail-in may stop with the junior bondholders. If the discrepancy is bigger, the process will move on down the line. There is a hierarchy in place and it will only be when the end has been reached that the fund will kick in. At that point, the ESM board will set out the modalities and circumstances.