The Competition Authority has set out a list of questions on the way in which banks operate.
It has also decided to narrow the focus of its investigation into banking practice to the operation of personal current accounts and the operation of loans to small and medium enterprises.
In a consultation paper published this morning, the Authority said it picked these areas for specific reasons.
Personal current accounts, it said, are essential for most households and are a core banking service.
Loans to small and medium businesses were picked for further investigation because such enterprises are an important source of employment growth within the economy.
Director of Consumer Affairs calls for reform
Just before the publication of the report, the Director of Consumer of Affairs claimed that the Irish banking system 'operates like a club'. Carmel Foley made the claims in her submission to the Competition Authority report.
Speaking on RTÉ Radio, Ms Foley said it was in the public interest for banks to justify their fees and charges to an independent regulator.
Ms Foley accused Irish banks of anti-competitive practices. According to the Irish Independent, she said the banks used rules and structures to keep competition out.
The Director also expressed serious concern about the way the retail payments/clearing system in Ireland is owned and operated by the banking industry itself.
She said this means new institutions cannot access the banking system here unless they are sponsored by the big banks. The Director said this situation would not be accepted in other sectors of the economy.
Banks criticised by ISME
This latest criticism of the banks comes after a strong attack by the Irish Small and Medium Enterprises which yesterday claimed that the banks were imposing excessive costs for loans and blocking firms from switching banks.
