Brian Cowen (Laois-Offaly, Fianna Fail)

Deputy Kenny mentioned that he called for recapitalisation when that approach was being taken in the UK. At that time, I made the point, which I emphasise again today, that the Irish banking system has not suffered from the sub-prime mortgage problem that has been a significant feature of the British banking system. The British authorities had to take immediate steps to recapitalise the banks in that country because they needed to mark the market in many of those assets. That was not the situation in the Irish system. The guarantee scheme we introduced provided the stability that was necessary. It was an important and decisive act on our part. Subsequently, we took the time to get the necessary advice on how to proceed with recapitalisation policy issues. Since then, market sentiment has been quite negative to banking, in general. All banking shares have decreased in value. Irish banking shares, in particular, have dipped more than others. We are aware that governance issues have arisen in respect of one particular financial institution, with the consequence of further negativing market sentiment in respect of other institutions. The Government, including the Minister for Finance and I, continue to accord top priority to this issue in the interests of maintaining a stable financial system in Ireland. It is important that all of us, in our comments, make the point that we are interested in ensuring that the Irish financial system operates and functions. That is a prerequisite for a properly functioning market economy in this country, even in the difficult times in which we are operating.

I reject with the contempt it deserves the continuing suggestion that we are motivated by anything other than the public good in trying to bring stability to the financial system in this country.

See this speech in context