It wasn't a good week for the Central Bank in its battle for a pivotal role in the future of regulation

The Bank had argued that a stand-alone authority was not a viable option, a position strongly supported by unions representing staff at the Bank. On Wednesday, the word was that the committee deciding on how best to organise a one-stop financial regulator - a group on which both the Central Bank and the Department of Finance sit - was about to recommend that such an agency be under the direct control of the Central Bank.

Within 24 hours, however, members of the committee decided the Bank should not play a central role in the new regulator. It appears the Bank and Finance were effectively outflanked by other committee members, including a representative of the department of Enterprise, Trade and Employment, and are now likely to be forced to issue a minority report in support of their position.

And why the change of heart? Sources say the committee decided that allowing the Bank to control the regulatory body would be impossible to defend publicly.