The Taoiseach has added his voice to the growing international campaign for reform of the International Monetary Fund and the World Bank.

Mr Ahern said last night that the so-called Bretton Woods institutions had been in place for more than 50 years and they needed to be examined. This examination should ensure they were modernised to deal effectively with the challenges of the coming decades.

He noted calls by US President Bill Clinton and the British Prime Minister, Mr Blair, for a review of the whole area and said that what was required was a response embracing short-term measures to deal with the immediate financial crisis and a long-term strategic approach to reform the international financial system.

Changes of the scale needed, he added, would require committed leadership and global vision and the Group of Seven industrialised countries (G7) was ideally placed to initiate the process which should include contributions from the developing nations and relevant financial and economic interests.

"The Government is eager to minimise the impact which events in other countries can have on our economy," he said.

Mr Ahern was addressing the annual dinner last night of the Financial Services Industry Association (FSIA).

FSIA chairman, Mr Pat O'Reilly, said yesterday that the industry here was "conscientious and compliant" when it comes to implementing required regulations. He conceded that the "last year has not been the easiest for the industry", but contended it had become more sensitive and responsive to the needs of customers.

"This is particularly true of the anti-money-laundering legislation which the industry is diligent in implementing and we are keen to co-operate with the regulators in this area," said Mr O'Reilly.

The FSIA is affiliated to IBEC and represents 160 member companies consisting of banks, building societies, finance houses, accounting firms, insurance companies and many businesses in the IFSC.

Mr O'Reilly said a significant set of statutory and non-statutory protections existed to guard the interests of the consumer; these include the Consumer Credit Act, and the offices of the director of consumer affairs, the ombudsman for credit institutions and the insurance ombudsman.

"Our consumer legislation is already in line with Europe and certainly more advanced in some areas and Irish institutions comply with the regulations very well," said Mr O'Reilly.

"That is not to say the system is perfect and we all accept there are difficulties that need to be resolved - lack of clarity regarding certain charges, complexity of charging and complexity of commission structures," he stated.

"There is an acceptance within the industry that the system needs to be made simpler and easier for the consumer to understand," he added.

He said the future of the industry was encouraging with 11,000 people likely to be recruited over the next three years. This "is in stark contrast to our near neighbours in Britain where 80,000 jobs were lost in retail banking alone this decade", he added.