Mr. Cathal Sheridan:

As part of the negotiation of this regulation, the view was taken that €55 billion was a suitable sum of money to have in place to help with resolution when it is taken into account that most banks will cover the losses through the bail-in process which is expected to absorb the bulk of losses where a bank is put into resolution. The view is that the resolution fund is there as a fall-back position to supplement and cover any additional losses. The view is that it will take a while to build up to that target level as it is a significant sum of money. That is why they gave it an eight-year period. Obviously during that period there is a possibility that money will be called from the fund and therefore the fund will have to be built up again. I think one could probably envisage that banks will continue to pay into that fund to reach the €55 billion or 1% of covered deposits at European level, whatever that happens to be in ten years time, to ensure there is sufficient money available for resolution purposes.