Permanent TSB (PTSB) could face a fine of as much as € 20 million following an enforcement investigation by the Central Bank into the bank's mismanagement of accounts.

Speaking in Dublin on Tuesday morning, Minister for Finance Michael Noonan said that while the Central Bank has not yet fined the bank, it is considering it.

If it does so, PTSB could be hit with a fine of as much as €20 million, a potential record for the regulator.

“I’ve no idea whether they’ll fine them, or at what level they’ll pitch it,” Mr Noonan said, adding that he understands that PTSB has already made a provision in its accounts for both the cost of the redress, at € 76m, and a potential maximum fine of € 20m.

Mr Noonan said that while the matter, which will see some 1,300 mortgage customers owed substantial refunds, was a “regulatory issue” for the Central Bank, he understands that it arose as a result of an accounting mistake, and there was no evidence of malfeasance.