The governor of the Central Bank of Ireland, Patrick Honohan, called for losses to be imposed on the senior creditors of failing banks in a speech delivered today (September 7).

"Losses should be shared by both junior and senior creditors where necessary – unless the amounts involved are small – in cases where the banks are put into resolution," he said. Speaking at a Money Macro and Finance research group conference at Trinity College in Dublin, Honohan rejected the idea of socialising losses