The Irish Mortgage and Savings Association (IMSA), the industry body which represents the interests of mortgage lenders and building societies, is to affiliate with the Irish Bankers' Federation (IBF). The new alignment will come into effect at the end of the month when IMSA director general Mr Des Byrne retires.

Announcing the decision yesterday, the IMSA said both bodies have increasingly become concerned about the same issues in recent years and with the retirement of Mr Byrne it was timely to join with the IBF. The IMSA represents the Irish Permanent, First Active, the EBS Building Society, Irish Nationwide, ICS and Irish Intercontinental Bank Homeloans. The association will retain its name under the new affiliation agreement and will continue to maintain its own council of members which will be expanded to include representatives from the IBF.

It will also continue to represent the interests of its members at the European Mortgage Federation.

Mr Byrne said that following a review of the association, it was decided that many of the issues which affect its members were also major issues for the wider banking sector. "Our members are basically the same. Many of the issues facing the different players in the financial services industry are now common to building societies, mortgage lenders and banks" he said yesterday.

The IMSA and IBF believe the forging of closer links will be beneficial to their members and to the entire financial services industry.