Seán Fleming (Laois-Offaly, Fianna Fail)

I am concerned that the €23 billion hit to the banks' balance sheets may cause severe financial difficulties and perhaps solvency problems for some of them. As has been stated throughout this process, the banks may require additional funds. Further capitalisation may be required either through the taxpayer or the banks' own resources, whether as a result of reorganisation or the disposal of non-core activities. I am concerned to ensure that any agreement signed between the Government or National Asset Management Agency and the banks will require that a large proportion of any such additional funds be made available for lending in the domestic market. It is no use for the banks to get that money, put it in their balance sheets, steady their own situations and bide their time for a year or two until the economy improves and not lending it out in the meantime. I would also be worried when they get this large cash injection, because any institution anywhere in the world that has a large cash deposit will be a takeover target for international banks and institutions.

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