It will come as no surprise to many that the first to feel the pinch as banks face a tougher fight for profits on mortgages will be the customers, apart from those lucky enough to be borrowing money, and staff.

Already in Britain, there are charges for customers of one bank using the cards of a rival in their ATMs. In the Republic, there has been talk of charges for those customers with small, expensive-to-maintain savings accounts with the top banks and building societies.

Now, Bank of Ireland has heralded the inevitable review of its operations as it figures out how to cut up to 7 per cent of its staff over the next three years.

First Active is also being tipped by industry sources to lead the way on branch closures as it feels the chill winds of competition far away from the cosy world of mutuality which it abandoned. Staff at National Irish Bank have also tussled with management over plans to introduce a new grading structure which, they argue, would reduce pay and worsen conditions.

The three institutions are unlikely to be the last to try to tighten their cost bases.