THE main negative implication:

. A reduction of £100 million a year in foreign exchange earnings are predicted. It will be less if Britain does not participate.

. Up to 7 per cent of the jobs in financial services will be at risk. The figure rises to 10 per cent if Britain participates.

. The once off cost of retraining study and the additional investment in marketing and information technology, required may come to as much as £130 million.

. Dublin is likely to be to relegated to the status of regional financial market. Much of the wholesale money market and bond market activity may be transferred elsewhere.

. The lower interest rates that are predicted as a result of EMU will affect the banks' margins.

. AIB and Bank of Ireland may become takeover targets for other European banks.

. The banks will experience increased competition in the corporate market. Lenders based elsewhere in Europe may seek to penetrate the market from bases outside Ireland.

The main positive implications:

. The banks should experience higher business volumes as a result of a general increase in activity. This may compensate for foreign exchange losses and create new jobs.

. The banks should also maintain their grip on the personal and small to medium business markets because of the cost to new entrants of establishing branch networks.