The Central Bank's efforts to retain its position as financial regulator in the Republic have been supported by the Irish Mortgage and Savings Association (IMSA) in its annual report.

The IMSA - which represents the major mortgage lenders - said in its submission to the chairman of the Single Regulatory Authority Implementation Advisory Group that it recommends that the Central Bank continue to be responsible for the prudential supervision of credit institutions. As the single regulator, it should also be responsible for the supervision of all participants in the provision of financial services.

"We accept that there may be a possible conflict of interests between prudential supervision and consumer protection issues, and we would therefore recommend that a sub-set of the Central Bank be established but that this sub-set be `ring-fenced' to ensure both confidentiality and separateness," the submission said.