The concept of a single regulator is basically flawed and could act as a handicap to Irish banks in their international dealings, Anglo Irish Bank claimed yesterday.

The Government is reviewing the setting up of a single independent regulator for the financial sector.

Anglo Irish Bank director Mr Tiarnan O'Mahoney said it was not in the best interest of prudential supervision that it be done by someone other than the Central Bank. He was speaking following an announcement that Anglo Irish had completed a €400 million (£315 million) revolving credit facility.

"Consumer protection is a separate issue not related to prudential supervision and does not need to be done by the same body," he said.

Mr O'Mahoney said the key to the decision to providing capital to Anglo and other banks in Ireland was that "we have an enviable track record with regard to banking supervision in this country".

He said no bank lending money to an Irish institution under Central Bank supervision had ever lost money. Now the issue is in the public arena, "we are looking at change. Will this improve quality of supervision? There is no evidence that it will."

But a change means "the next time we import capital into this country, be it Anglo or any other bank, an explanation will be required as to who any new supervisor is. This is not helping Irish banks to compete in the world market," he added.

Mr O'Mahoney was addressing bankers in Dublin yesterday following the formal signing of the €400 million (£314 million) facility which was given by 36 international banks in Dublin. Den Danske Bank and WestLB acted as joint arrangers of the facility. Anglo said the facility was increased to €400 million from €300 million following "a significant over-subscription" from the international banking market.