Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

There are some legacy issues in the Italian banks that we have been working very hard to address, such as non-performing loans. The kind of progress one would like to see in the Italian banking system has not been made. They are now looking at a proposal where no liabilities will be bailed in first. That is not the approach we want to take. We believe it is part of a resolution. Part of the Single Resolution Fund is that there would be at least 8% bail-in of certain liabilities before we moved to any kind of drawdown of funds from the national compartment to the mutualised element of those. That is what we are looking for here. Obviously, one has to be cognisant of banking systems in other jurisdictions getting into difficulties and what they are trying to do to address that. In the context of Brexit there have been difficulties for Irish banks operating in the UK because of the amount of work they do there. That poses challenges to us, of course. The Minister for Finance, Deputy Noonan, would have spoken about this last week in relation to the work that the NTMA and the Central Bank had done to prepare for the outcome of Brexit and have been doing since in terms of monitoring developments.