Bank of Ireland has decided to reduce, and in some cases abolish, charges for exchange transactions involving euro-zone notes and coins to end the European Commission's cartel investigations into alleged price fixing.

The bank has said that a minimum charge of £1 (#1.27) per transaction will be abolished from June 8th, and commission charges for exchanging notes and coins will fall from 2.25 per cent to 1.5 per cent.

From October 1st, the bank will cease to apply this commission rate to its account holders. The special fixed charge of £2.50, levied on transactions for the exchange of euro-zone notes and coins at Dublin, Cork and Shannon airports will be abolished from October 1st, 2001.

This is a significant climbdown for the bank. The European Commission has agreed to end its investigation into its role in alleged price fixing following the changes.

Last month, Ulster Bank also cut its charges.

Six Irish banks were being investigated by the European Commission. The banks would have had to bear hefty legal costs of the continuing investigation. It is likely this was a deciding factor in Bank of Ireland altering its charging structure.

Meanwhile, the bank's executive pay bill rose by 17.5 per cent in 2000 from #2 million to #2.35 million. According to its annual report, the bank's three executive directors - chief executive, Mr Maurice Keane; finance director, Mr Paul D'Alton; and chief executive of the bank's treasury operations, Mr Brian Goggin - shared a total pay package of #1.7 million, up 32 per cent. Mr Keane, was paid #863,000 including a salary of #550,000, a bonus of #223,000 and pension and other benefits worth #90,000.

Mr D'Alton received #399,000, including a salary of #256,000 and a bonus of #91,000. Mr Goggin earned #397,000 with the same salary and bonus as Mr D'Alton.