THE NATIONAL Pensions Reserve Fund could be used in the recapitalisation of the banks where there was a benefit for the taxpayer, Minister for Finance Brian Lenihan told the Dáil.

He said he had noticed in public commentary some impatience about the pace of recapitalisation.

"We should be careful about how we get involved. For this reason, I have insisted that the onus was on the banks in the first instance to capitalise themselves, as they are private institutions.

"On the possible use of the National Pensions Reserve Fund, I agree that it can be applied where there is a prospect of an upswing for the taxpayers in an investment in a particular financial institution, which was made clear in the Government's statement last weekend.''

Speaking during a debate on the €10 billion recapitalisation programme for financial institutions, Mr Lenihan said a great deal of work had been done since the Government guarantee was given.

"The detailed examination of the asset quality within the banking sector, and the submission of the detailed business plans, have enabled my officials and I to have a far more informed view of the state of the Irish banking sector.''

Fine Gael spokesman Richard Bruton said there was no Government strategy emerging. "We are expected to believe that the Government is working to some master plan, but the document produced was full of undecided options and demanded no new conditions, which would have given a sense that it was driving the process in a particular direction.''

Labour spokeswoman Joan Burton said that the most striking aspect of the banking crisis was the complete lack of accountability at the highest levels.

Sinn Féin's Arthur Morgan said there was no good news for struggling mortgage holders.