The Compeition Authority today criticised Irish banks for not being competitive enough for small business and personal customers.
In its report into the Irish banking sector, published today, the Competition Authority says banks do not compete for customers at present.
The report identifies anti-competitive problems in three sectors examined - personal current accounts, lending to small business and the role of the payments clearing system.
Competition Authority Chairman John Fingleton
It makes 25 recommendations aimed at making banks more more competitive.
It recommends bank charges regulation should not be removed until competition improves.
Chairman of the Authority, John Fingleton said: "Competition should make financial institutions more responsive to the needs of Irish customers.
The Competition Authority has identified a number of areas where competition is not allowed to develop freely and unencumbered and we have made appropriate recommendations."
On the area of personal current accounts, the report remarks that personal current account holders are effectively locked in to their existing service because it is so difficult to change banks.
It says the result is that banks don't compete for existing account holders but fight aggressively for customers who are opening accounts for the first time.
The report acknowledges some of its recommendations have been anticipated in the banking sector with organisations involved announcing their intention to remove some of the more troublesome restrictions on competition in banking.
The Competition Authority's report Competition in the (non-investment) banking sector in Ireland is available from the Authority?s website www.tca.ie/banking.html