The Minister for Finance has said if there was private investment in Irish banks he would have to ensure that the public interest was served.
Brian Lenihan, who is due to meet banking executives later this week, said there were no discussions before him at present in relation to reports of possible mergers between banks.
He also stressed that the Government was not the employer of staff in banks and financial institutions.
Earlier, the Irish Bank Officials Association called on the Government to reject substantial investments in banks by private equity funds.
IBOA General Secretary Larry Broderick described these private investors as the real sharks and predators of the business world.
Mr Broderick also raised concerns about the implications of a wave of potential mergers as the sector consolidates.
He warned that if Bank of Ireland and Irish Life and Permanent were to merge, more than 3,500 jobs could be lost.
As the financial crisis deepens, many observers say it is inevitable that some of Ireland's main banks will have to merge to survive.
The IBOA said it accept that banks need recapitalisation - but it vehemently opposes allowing private equity funds to take major stakes in them.
Mr Broderick claimed such funds aim to buy cheaply and reduce costs by cutting staff numbers and pay, squeezing customers and cutting services to realise as much asset value as possible.
However, he claimed they had no interest in the long-term viability of the business or the economy.
He said funds from the National Pension Reserve Fund should be invested in the banks.
