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Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Grand. In response to Deputy Boyd Barrett earlier, Mr. Sheridan spoke about the hierarchy and about the bail-in. Obviously, the whole process has certain elements after the bail-in. Could he talk me through the hierarchy that is followed when dealing with a resolution?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: What happens after the bail-in?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Therefore, the state is the second tier of the-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Can Mr. Sheridan explain that to me?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Does the compartment remain after mutualisation?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Does that mean the involvement of the state as the second tier goes as well?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Okay. It then goes straight into the-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: The mutualised fund-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: What was the reason behind the eight-year provision?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Yes.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: What happened to the European stability mechanism? Was it not supposed to be the bailout?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Has any analysis been carried out by the Department on the benefits of Ireland applying for retrospective recapitalisation of the pillar banks?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: From the ESM side?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: We are six months into that opportunity for application. Has there been any effort to apply for that?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Is it the case that there has not been an application or preparation of an application?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Britain is not involved in this new process.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Is there an extra cost to the participating countries as a result of that? Is it the case that if Britain were involved, there would be a necessity for a larger pot or is it that as Britain is not involved, each country has to produce more?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Bank customers are hard-pressed at the moment. Is there a likelihood that this extra charge will be passed on to the customer?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: It would be €1.3 billion out of the Irish banking market.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Single Resolution Fund Bill: Discussion (10 Jun 2015)

Peadar Tóibín: Sin é. I thank Mr. Carrigan.

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