Brian Cowen (Laois-Offaly, Fianna Fail)

Developments in the financial system are taking place against a background of strong economic fundamentals. We have a well capitalised, liquid, robust and financially sound banking system, which has withstood recent turbulence in international markets ably and well.

Lessons must be learned in terms of the globalisation of markets and we need to examine these matters, including the issue of deposit guarantee, with our European Union partners. In a recent case in Britain a particular bank encountered difficulties to which the Chancellor of the Exchequer responded in his own way. Our approach must be to take a considered view of these matters and work with our EU colleagues within the EU template of supervision and the financial regulatory regime currently operated in the euro area. We will probably see the outcome of deliberations on these matters by the middle of next year.

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