Opposition parties have criticised the Taoiseach for his comments about the Army being on stand-by to guard banks during the financial crisis.

Enda Kenny told a conference in Spain on Thursday morning that the former Governor of the Central Bank, Patrick Honohan had warned him that the Army's assistance might be needed as Ireland's banks and ATMs faced a cash shortage.

Mr Kenny went on to tell the conference in Madrid that Ireland's economy had been 'pulled back from the brink' since the coalition have come into Government.

"The governor told me, it looks like this weekend, a few years ago, you’ll have to put the army around the banks and around the ATM machines, and introduce capital controls like they had in Cyprus. So we’ve pulled back from that brink," he said.

However, Fianna Fail's Finance Spokesperson, and member of the Oireachtas Banking Inquiry Michael McGrath, says the Taoiseach needs to provide more details around this alleged conversation with Patrick Honohan

"It sounds to me like comments that are shaped by a Taoiseach that is facing into an election and is trying to paint a certain picture.

"There's no doubt that the country was in a very difficult crisis back in 2008 to 2011 and beyond, but to bring in this new information in this way and not having made any reference to it when he came before the Banking Inquiry is just inexplicable," he said

In October of this year the Taoiseach made the same claim, saying Mr Honohan had told him on  Wednesday that the army could be required that Friday.

"The governor told me, it looks like this weekend, a few years ago, you’ll have to put the army around the banks and around the ATM machines, and introduce capital controls like they had in Cyprus. So we’ve pulled back from that brink."

Minister for Defence Simon Coveney made the same claim in November 2014, when speaking to Newstalk, saying "the Taoiseach was getting briefed by the Central Bank that ... the army may have to surround banks."

Sinn Féin Finance Spokesperson Pearse Doherty said there is a need for clarification on the comments from both the Taoiseach and Mr Honohan.

The comments "would suggest that Ireland stood on the precipice and was within days of implementing this fall-back plan," Mr Doherty said.

"If he is being truthful ... was the Irish economy on the brink of collapse? Was the euro itself at risk of dissolution?," he asked.

"The path now is clear; the Taoiseach and Patrick Honohan must state publicly what situation could have led to a conversation where the Governor of the Central Bank advised the Taoiseach to ready the army and to prepare to install capital controls in Ireland," Mr Doherty added.