The Government has won the vote to extend the bank guarantee by 83 votes to 74.
The Government motion to amend the Credit Institutions Scheme allows for the guarantee, which was due to expire, to be extended until the end of December.
During the debate Minister for Finance Brian Lenihan said that if the guarantee had not been introduced there would be no banking system and no economy.
Earlier, Taoiseach Brian Cowen said the Government does not yet know what the final figure for the cost of Anglo Irish Bank is.
Speaking on RTÉ's 6.1 News, Brian Cowen said the Government would not have the figure until the Financial Regulator conveyed it formerly tomorrow.
He said the Financial Regulator's estimate would be his very best figure as to what the final cost would be. Mr Cowen added that as much certainty as could be brought to the situation would be brought to it tomorrow.
He said earlier references to €30 billion were in the context of illustrating that were the figure to be of that magnitude, the additional annual interest payment on the national debt would be €1.5 billion.
Mr Cowen agreed that was a staggering figure, but claimed every government that has had to recapitalise their banks has faced a similar situation.
In relation to the bond markets, Mr Cowen said the Government has to make sure the markets understand what the state's level of exposure to the banks is.
He claimed the Irish Government has been a lot more transparent, open and upfront about how it is managing the situation than other governments have.
Earlier in the Dáil, the Taoiseach said he stood over the banking guarantee, seeing it was the right decision.
