A “political understanding” has been reached between EU governments on the direct recap tool for the ESM says eurogroup chief Jeroen Dijsselbloem.

Direct bank recaps will kick in when a struggling bank fails to find funding from private sources and the ESM member is concerned that they cannot step in.

“For a transitional period until 31st Dec 2015 a bail-in of 8% of all liabilities will be a pre-condition for using the instrument as well as the resources available in the ESM member’s national resolution fund. From Jan 1st 2016 a bail-in in line with the bank recovery and resolution directive will be required” he said

Don’t be holding cash above the bail in limits come Christmas next year