Bank of Scotland (Ireland) has broken ranks with the Irish Bankers' Federation by declining to contribute to an industry submission to the Competition Authority.

The bank has told the IBF that it does not agree with a number of the federation's views on competition within the domestic financial sector.

Bank of Scotland's chief executive, Mr Mark Duffy, said he was "diametrically opposed" to the IBF's position on the issue.

"They see nothing wrong with the existing competitive landscape," he said.

Bank of Scotland, on the other hand, takes the view that the industry is "riddled with anti-competitive practices".

It will now prepare its own, separate, submission to the Competition Authority, which launched a study into competitive practices within the banking industry last September.

Mr Duffy is calling for the authority to tackle barriers to entry into Irish banking and to recommend greater account mobility within the sector.

He is also seeking an examination of what he considers to be "coincidental pricing" structures among Irish banks.

The IBF has consistently rejected accusations that its members make excessive profits at the expense of their customers.

A spokesman for the federation said yesterday that Bank of Scotland was "by no means" the only of its 60 members to take an individual stand on the competition issue.

He said the IBF had written to its entire membership to invite their participation in the study but a number had politely declined the opportunity to contribute.

"A proportion of the membership came back and said yes and a proportion said no," he said.

It is likely that most of the negative responses came from banks active in the international sector, which fall outside the terms of reference of the Competition Authority study. It is understood, however, that at least one other "high-profile" bank has chosen to move outside the IBF fold by formulating its own submission.

While the identity of this member is not known, AIB and Bank of Ireland, the Republic's two largest banks, have said that they are committed to supporting the IBF's stance.

The spokesman said the federation's submission had not yet reached the final stages of preparation. He added that most institutions that had signed up to the IBF's views were also likely to make their own individual submissions on the study.

Mr Duffy expects to lodge Bank of Scotland's offering to the authority towards the end of this year.