The Minister for Finance, Mr Cowen, has told the Institute of Bankers that consumers have a right to expect a high level of service and that unethical practices will undermine the sector.

Speaking at the Institute's annual dinner last night, Mr Cowen said that, while he will strengthen legislation regulating the sector, reforms must also come from within.

"Institutions must look at their own systems to ensure that, while encouraging product development, innovation and efficiency of delivery, they are culturally and systematically intolerant of unprofessional, dishonest, unfair or shoddy treatment of customers.

"In doing so, they will be building the reputation of their own institutions, developing the loyalty of their customers and serving the best interests of the Irish economy and financial services industry in general," he said.

Mr Cowen said that consumers of all types have a right to feel comfortable in carrying out their financial services transactions in Ireland, and that the Government has been active in seeking to ensure financial institutions operate within a professional and modern regulatory environment.

The Minister said he believed that the establishment of the Irish Financial Services Regulatory Authority (IFSRA) had been a real success and had made for greater accountability to the industry, consumers and the general public.

Mr Cowen said he was concerned to further modernise the body of legislation dealing with financial services. His predecessor, Mr McCreevy, began a public consultation process in relation to the consolidation and simplification of financial services legislation.

The Minister referred to recent events which, he said, have undermined the reputation of the domestic financial services industry. "I am anxious that IFSRA and other regulatory bodies concerned get on with the task of analysing what has happened in these cases, and taking the appropriate action on foot of their analysis," he said.