One of the concerns raised by Carmel was the way in which the clearing and retail settlements system operated within Ireland which she said was organised in such a way to make it impossible for new firms to enter the market unless backed by large banking institutions.

The country's banks have also been subject of strong criticism from the Irish Small and Medium Enterprises Association this week which alleged the banks are charging excessive costs and preventing firms from switching accounts.

A year long study by the Competition Authority is due for imminent release and it is expected to show many areas where competitiveness can be improved within the banking sector.