The regulation of the financial services sector is hindered by the multiplicity of regulatory bodies with differing powers and functions, according to the Minister for Finance Mr McCreevy.

Addressing the Institute of Bankers, Mr McCreevy said that crossovers between formerly discrete sub-sectors of the financial services industry were increasing with the development of financial products and increasing concentration in the ownership of financial institutions.

"In a small country like Ireland, there is a case from both an effectiveness and efficiency perspective for building a critical mass of skills relating to financial regulation in a single location. The Government believes that this is the case," Mr McCreevy told the institute's centenary dinner.