The Department of Finance says it will force banks to seek approval from the Central Bank before they increase charges on customers.
In a review of banking charges in Ireland, it has decided it will not change the current system where the Central Bank needs to sign off on new charges first.
It has decided that removing the current law would give too much power to banks to increase charges at a time when there is little competition in the Irish market.
However the Department of Finance says it could scrap the requirements in the future when there is more competition in the banking sector.
The review found that net fee and commission are lower in the Irish banks than in their European counterparts relative to net income, and that fees and commissions have become a more important source of income to the banks in recent years.
Irish banks have been able to increase fees and commissions since 2009 despite restrictions, the report says.
