Banking probe chief Ciarán Lynch emerged victorious in a bitter Dáil turf war to run the high profile inquiry, but now faces a fresh fight to prove he is no Government stooge.

A top civil servant has refused to give assurances that a €3.6bn national accounts blunder will be cleared up before he steps down next year.

The Consumers Association of Ireland has said any remaining public faith in the banking sector was now gone after Allied Irish Bank admitted years of overcharging.