Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

To be completely clear, in that situation loans from the backstop itself are repaid by contributions from the European banking sector. In addition to repayments that are funded by banking sector contributions, the single resolution mechanism regulation sets out a series of conditions which limit the risk to which the fund, and thereby the backstop, could be exposed. A contribution from the fund or the backstop itself to recapitalisation could only be made following the bail-in of at least 8% of the total liabilities, including funds, meaning that shareholders and creditors suffer losses before the SRF or the backstop itself is accessed. My point is that before we get anywhere near the development of those kinds of circumstances, taxpayers will be protected by bondholders being brought in to pay for the cost of banking difficulty and we will have the operation of the SRF.