A second banking expert has been appointed to the investigation into the banking sector.

Max Watson, a former European Commission adviser to Klaus Regling who was last month appointed to lead the preliminary banking investigation, will co-author the report to be submitted to the Minister of Finance.

Mr Watson, an economist and academic, has held senior positions in the IMF, the Bank of England and the European Commission.

In a statement, Minister for Finance Brian Lenihan said he is confident the report will identify the causes of the crisis.