The banks have this week welcomed the Competition Authority's study into the state of competition among the main players, suggesting it might convince consumers they are not being ripped off.

The Irish Bankers' Federation (IBF) believes the study should provide a basis on which bank charges can be evaluated fairly by Irish consumers but it is keen to set the parameters by which they should be judged.

It has warned that a one-dimensional approach comparing single product prices with those provided by banks in other countries will not result in a fair and comprehensive assessment. Writing in the IBF's bulletin this week, federation director general, Mr Jim Bardon, said competition was not simply a matter of price.

"To most consumers, quality and convenience also enter into the equation and should be in any assessment."

The federation, together with the Irish Mortgage and Savings Association, has made a submission to the Competition Authority in which it voiced concern about statements made in the terms of reference, which they claimed appeared to pre-judge the issue.

The banks have also welcomed the inclusion of credit unions, An Post and the life sector in the study.

Realistically it will take a miracle to convince bank customers they are getting a fair deal.

Yesterday Bank of Ireland proudly announced a 10 per cent rise in profits to €602 million in the first six months of its financial year. The bulk of this was earned in the Republic.