The Deputy Governor of the Central Bank has said he does not see a case for raising the cap on banking executive's pay here.

Ed Sibley told the Oireachtas Joint Committee on Finance that clearly there would be different candidates available for such roles if there was a higher salary level.

But he said he thinks it is perfectly plausible to find people to work in those roles within the salary cap.

Mr Sibley added that he thinks there is, however, a case for thinking carefully about what is happening underneath those levels, and about how remuneration works in some of the other critical functions and roles where others are also subject to the cap.

He said in some areas the banks are potentially at risk of losing critical staff to firms that are not subject to the cap.

Mr Sibley said there are merits in allowing elements of variable pay in those circumstance, subject to it being well designed, making sure the incentives are aligned with the culture that is stated within the institution and that it is consistent with the rules in place around clawbacks.

He said this would also allow banks to vary their costs depending on the circumstances they are in.

Earlier, the Director General, Financial Conduct at the bank said cash back mortgages do have a role to play in the mortgage market.

Derville Rowland told the committee that a competitive mortgage market with plenty of choice is in the best interests of consumers.

She said different options have a role to play as long as they are clear and properly sold to customers.

Ms Rowland said the bank is of a view that cash backs do have a role in that context.

She added that while they can be cheaper in the first few years, if customers have the "wisdom" to switch they can turn out to be the cheapest option of all.

However, she said that if borrowers stay on the cash back option, then they can be a more expensive option.

The Central Bank has no role to intervene on cash back mortgage unless they are being mis-sold, she added, and the bank doesn't see that at present.