Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 55: To ask the Minister for Finance, in view of certain comments (details supplied), if he can reassure the public that no more taxpayers' money is going to go into the banks; and if he will make a statement on the matter. [14215/11]

Michael Noonan (Limerick City, Fine Gael)
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A fundamental element of Government Strategy has been to restore a functioning banking system and the Government has made particular commitments to recapitalising the banks and restructuring the banking sector as part of its Programme for Government. The Prudential Capital Assessment Review in the Central Bank of Ireland's Financial Measures Programme was published on 31 March 2011. The PCAR provides that €24 billion, which includes €3 billion in contingency funds, is required by the banks for capital purposes to ensure the banks maintain a minimum of Core Tier 1 capital ratio of 10.5 per cent at all times in the base case scenario and do not fall below a minimum Core Tier 1 capital ratio of 6 per cent even in an extreme stress scenario. It should be noted that €3 billion of any recapitalisation will be on a contingent basis and if it is not required, it must be returned to the State.

While the Government is committed to ensuring that the banks meet the PCAR target, the Government will seek direct contributions to solving the capital issues of the banking system by looking for further significant contributions from subordinated debt holders, by the sale of assets to generate capital, and where possible, by seeking private sector investors. It is expected that the effect of these actions will be to reduce the amount of capital required very significantly.