Business reaction: The release of yesterday's report on overcharging at AIB has led to calls for an in-depth review of the banking sector and greater customer vigilance.

ISME, which represents small firms, called on the regulator to undertake a full root and branch investigation of the entire banking sector in order to prevent similar overcharging occurring again.

"It is ironic that the latest episode in a long list of overcharging only came to light by an anonymous caller, confirming that the regulatory process in place to adequately monitor and control the sector has patently failed," ISME said.

The rival Small Firms Association (SFA) noted that the risk profile of small businesses was still fragile with 47 per cent of all start-ups failing in the first five years of operation.

"Small businesses need all the assistance they can get. The more competitive the banking market, the better for everybody," it said.

To encourage this, a review and overhaul of the payments and cheque-clearing system may be required, the SFA said.

Meanwhile, the Irish Exporters Association (IEA) said the report reflected badly on the effectiveness of IFSRA and the efficiency of AIB. "We would urge greater vigilance by the regulator but also exporters themselves will be more vigilant in their dealings with banks now that the bond of trust has been broken," IEA chief executive Mr John Whelan said.

The Consumers Association of Ireland described AIB's response to the report as "disappointing". The finding that AIB did not break the law should provide no comfort to the board of the bank because Irish legislation has been hugely deficient in providing protection for consumers, it said.

"The fact that AIB is taking comfort from this finding would appear to indicate that there is a continuing organisational failure to understand that it is not legislation which is at the core of this situation but rather banking ethics, a matter upon which AIB is largely silent," the CAI said.

The Irish Bank Officials Association, which represents banking staff throughout the State, said its members would be saddened and angered by the revelations at AIB. The union called for the establishment of a forum on banking to evaluate the prevailing culture that facilitated and tolerated such practices. It also said there was an onus of responsibility on the financial services industry to restore confidence in Irish banking. "This can only be achieved by the industry taking responsibility for past mistakes and ensuring they are never repeated," the IBOA said.