Oireachtas Joint and Select Committees

Wednesday, 10 June 2015

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Single Resolution Fund Bill: Discussion

2:00 pm

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

Theoretically, there could be no end to how much by which we would have to replenish the fund if the cost of the collapse in a particular part of the banking system was to far exceed the size of the fund and any bail-ins that preceded it. Potentially, we could have to keep replenishing the fund. Am I right? Mr. Carrigan might say that is unlikely to happen and that it tends to be the smaller banks that go bust, but I want to know if it is a possibility. I do not think a very big banking collapse is impossible to imagine. Is it possible that the money we put in is exhausted quickly and we are being asked for more and more? Is there any end to how much we might be asked to put in if the draw on the fund was big enough?

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