The report, entitled “Study of Competition in the Provision of Non-investment Banking Services in Ireland: Report and Recommendations”, suggests that competition in the Irish banking sector is not working well for consumers and small business.

As an example of this, the Competition Authority cites the high switching costs for customers who want to move between banks, and the considerable barriers facing banks who want to offer new services to customers.

According to the Authority:

"The sources of these problems are both the behaviour and structural arrangements of the banks themselves, and unintended consequences of government regulations."

Following detailed scrutiny of the provision of personal current accounts (PCAs) and lending to small and medium enterprises, the report makes 40 detailed recommendations designed to enhance competition between banks for the benefit of both personal banking customers and small and medium enterprises.

However, according to reports in the Irish media, the banking sector is likely to welcome the fact that the Competition Authority's report did not recommend the payment of interest on current accounts, a move suggested by its UK counterpart following a similar investigation.

Speaking to the Irish Independent following the publication of the report, NCB analyst, David Odlum announced that:

"Overall, we continue to believe that the eventual result of the Competition Authority review will not have a major impact on the Irish bank sector."