Banks should continue to be obliged to justify their fees and charges, and should be made facilitate customers who want to switch banks within a set timeframe, the Office of the Director of Consumer Affairs (ODCA) has recommended.

In its submission to the Competition Authority's study on banking, the ODCA said banks should be bound by statutory codes of conduct with regard to areas such as switching, transparency, branch restructuring and general customer service, rather than the voluntary codes currently in place.

The Irish Financial Services Regulatory Authority (IFSRA), which took over the regulation of banking charges from the ODCA last May, should have the power to name and shame or fine banking institutions that do not comply with these codes.

The Director of Consumer Affairs, Ms Carmel Foley, said it was her view that charging structures at banks and financial institutions were not clear and transparent.

The ODCA's submission has recommended that the regulatory powers be extended to certain discretionary and out-of-order charges, and charges that inhibit account switching, such as those in respect of closing or setting up direct debits and standing orders.

In order to boost customer awareness, IFSRA should publish on its website both the charging structures and the level of interest rates applied by institutions in respect of different products, the ODCA has told the Competition Authority.

This is already done by the Financial Services Authority in the UK.

Banks should also be encouraged to bring about greater cohesiveness in their charging structures, so as to make it easier for consumers to compare pricing structures.

The ODCA said it believed an independent body, along the lines of ComReg in the telecoms sector, should be set up to supervise the operation of the payments system and ensure that smaller domestic institutions and new banks in the market have fair access.

Emphasis should also be put on combating financial exclusion and ensuring that all sections of the community have access to basic financial services, according to the ODCA.