Banks have dismissed a report that they have refused to take part in a conciliation process to reach a solution for Priory Hall residents.

The mediation was agreed last week between Dublin City Council and residents. It will be chaired by former President of the High Court, Mr Justice Finnegan.

AIB and Bank of Ireland are the main lenders to residents. It is understood AIB remains in talks about the conciliation process and has not refused to take part.

A spokeswoman for AIB said the bank was working with Priory Hall borrowers on a case by case basis and will continue to do that.

The Irish Bankers Federation said it was never asked to take part in the conciliation process and it does not envisage being part of any process. 

A spokesman for the federation said banks are accommodating individuals already, while a representative for Priory Hall residents said it would be devastating if banks refused to take part in the conciliation.

Dublin City Council said it would not be commenting on the story in the Sunday Business Post, while Bank of Ireland could not be reached for comment.