Richard Bruton (Dublin North Central, Fine Gael)

There are substantial up-front demands associated with the proposed strategy. It involves buying the assets and recapitalising the banks; a great deal of cash is demanded up-front. The alternative would not require as much. Significant incentives may still be needed if the banks continue to shrink their balance sheets. They are shrinking their balance sheets to maintain independence from the State, which is natural. They will try to save the skins of their investors and are doing so. As the State invests money they will seek to shrink their loan books to preserve their independence and there is an incentive for them to do so.

See this speech in context