Minister for Finance Paschal Donohoe has told the Dáil the Government is not satisfied with the progress made to date by the banks on the tracker mortgage issue.
He also told the House that customers had been treated "disgracefully" and that the past and current culture of the banks was "unacceptable to him.
"It shines a light on to the culture of our banking system when this issue originated and it shines a light into the culture of our banking system now and neither is acceptable to me," Minister Donohoe said.
He was speaking following meetings this morning with AIB and Ulster Bank.
Both lenders apologised for their role in the tracker loan scandal.
Gerry Mallon, the CEO of Ulster Bank, said he had apologised unequivocally for the mistakes the bank had made and he said he reiterated that apology today.
He added that his "number one focus is putting this right and that is what we are going to work hard at now".
Bank CEOs apologise for tracker mortgage issues pic.twitter.com/fokdYCWAkR— RTÉ Business (@RTEbusiness) October 24, 2017
AIB chief executive Bernard Byrne also apologised for the bank's role in the tracker loan scandal following his meeting with the Finance Minister.
Mr Byrne said he had outlined to Mr Donohoe the work the bank had undertaken to date in relation to the customers who had issues with their tracker mortgages.
He said AIB was confident of being able to work within the framework which exists, adding that he was confident of making significant progress.
AIB, which is 71% state owned, has previously set aside €190m in respect of the track loan issue.
Its costs so far run to an estimated €133m.
Minister Donohoe pledged to update the Dáil tomorrow evening during a scheduled private member's debate on how much progress had been made.
The Finance Minister held discussions with Bank of Ireland, Permanent TSB and KBC on the mortgage issue yesterday.
A spokesperson for the minister said Mr Donohoe was very disappointed that there still seemed be a cultural issue with the banks.
All of the banks are expected to make detailed statements on the issue tomorrow.
The Minister for Foreign Affairs has told the Dáil the Government will make a comprehensive statement on the scandal tomorrow, once Mr Donohoe has concluded his meeting with the banks.
He was responding to Fianna Fáil leader Micheál Martin, who asked if the Government was going to increase the levy on banks as a result of the scandal.
Mr Coveney said Mr Donohoe had made it clear at last night's Cabinet meeting that if the Government was not satisfied with the response of the banks this week, they would have another Cabinet meeting to examine the options available to Government.
He also there was a recognition that there was still a cultural problem in the banks that needed to change.
He added that different banks were behaving differently in terms of cooperation with the Central Bank.