The future role of the Central Bank is at the centre of differences between members of the group set up to advise the Government on the establishment of a single financial regulator.

The Department of Enterprise, Trade and Employment and the Director of Consumer Affairs are understood to be in favour of a regulator completely independent of the Central Bank. But the Attorney General's office has expressed concern at this idea while the Taoiseach's Department fears foreign banks based in the International Financial Services Centre may not welcome a regulator which has no links with the Central Bank.

An attempt to reach a compromise will be made at a meeting next Monday although it is thought that further discussions may be required.