The committee investigating the banking crisis has been told it cannot inquire into the Cabinet meeting which led to the introduction of the bank guarantee.

The Oireachtas Banking Inquiry has been told that Cabinet confidentiality protects any discussions leading to the ill-fated guarantee.

However the committee will have the power to obtain any paperwork which helped Ministers to reach their decision.

Chairman of the inquiry, Ciarán Lynch, says despite the legal advice being they cannot discuss the Cabinet meeting on the night of the guarantee, it will still be worth the estimated €5 million cost.

Member of the Inquiry, Fianna Fáil's Michael McGrath says this shows that a different type of inquiry was needed.

It has given itself until the end of next year to issue its final report.

It wants to issue its final conclusions in November 2015 some four months before the next election must be called.

The inquiry has held its second meeting in Leinster House today.

The committee has also given itself until this September to finish its proposal for terms of reference and possible costs which need to be approved by the Dáil and Seanad before the inquiry can fully begin.