Brian Lenihan Jnr (Dublin West, Fianna Fail)

The Deputy did not qualify it. He would appreciate I was going to make the point that the degree of liquidity attracted by the banks through the guarantee was actually greater than the amount of liquidity available to the banks as of 1 September. On that date, as Deputy Bruton is aware, the difficulties had not yet emerged that led to the giving of the guarantee in late September.

On the question of capitalisation, as part of the review of the banking system now taking place, the question of the adequacy of capital ratios must be examined because of the position that now obtains in other European countries. I have made it clear at all stages that my view and that of the Government is that capitalisation by the State must only be an ultimate and last resort.

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