Department of Finance estimates of the sums that might be gleaned from dormant accounts is excessive, the new president of the Irish Bankers' Federation (IBF) has said.

Mr Donal Forde, managing director of AIB Bank's operations in the Republic, said the Department's belief that €178 million may lie dormant in accounts is misplaced. "We expect a high level of reactivation, which will result in a much lower figure at the end of the day," he said.

In his first address as IBF president, he also spoke of the recent damage to the sector's reputation, saying it had been the focus of "a great deal of criticism that has damaged our credibility and undermined public confidence in us".

"We would argue, objectively I believe, that we have not always been fairly represented and yet that may simply point to the need for all of us to work harder in the interests of managing our image and the public perception of the industry," Mr Forde said. An immediate challenge facing the industry was regulation, he added.

He also addressed the issues of competition and bank charges.

"Bank charges in Ireland compare very favourably with the UK and also with most of our continental neighbours," Mr Forde said.