The Taoiseach Leo Varadkar has said he would not rule out the possibility of bankers being prosecuted over the tracker mortgage scandal.

It is reported the Central Bank could impose multi-million euro fines on banks next year for overcharging more than 38,000 customers.

An investigation into the issue is expected to be finished early in the new year.

Under new rules, penalties of up to €10m - or 10% of turnover - could be levied on each of the financial institutions.

Speaking at the Garda College in Templemore, Mr Varadkar said there have been prosecutions in the past.

"Well the fines haven't been levied yet, that's a matter for the Central Bank.

"I certainly wouldn't rule out the possibility that there could be prosecutions - but again, Government isn't responsible for prosecuting people.

"But there have been a number of prosecutions of bankers and bank officials in the last couple of years, so I wouldn't rule that out".

Transport Minister Shane Ross speaks to the media at the National Coordination Centre in Dublin | Image: Sam Boal/RollingNews.ie

Earlier, Transport Minister Shane Ross said Irish banks were unable to feel pain and conscience, despite the scandal.

He said reports of fines for the banks will have little impact on them.

Minister Ross told the Pat Kenny Show it is too easy for the banks to write a cheque with somebody else's money

"The problem with fining the banks is that of course no-one really suffers except the State - they're State-owned banks - and it's an inadequate fine cause you don't have any personal accountability there.

"What happens is the banks decide OK, they're going to be fined millions and... they just write a cheque and they got on with their business.

"And in fact, nobody's personally held accountable and it's a very easy thing to write a cheque with other people's money.

"In this case, sometimes they're writing a cheque for sins they've committed in the past and the taxpayer's actually paying for it: so it's somewhat ridiculous."

"I think the banks are totally unable to feel pain and unable to feel conscience.

"And I think in effect what they're going to do is say 'Yes, we'll be fined' and get on with the business.

"And the same people are in charge of some of the banks that were there in the time of the crash and in similar positions.

"We haven't actually sorted this problem out - it's not a satisfactory solution - a fine should be imposed and there'll be no personal pain or accountability".

Additional reporting: Sinéad Spain and Kacey O'Riordan