A member of the Banking Inquiry has denied that they had to water down the final report because of legal challenges.

Developers Johnny Ronan and Michael O'Flynn had threatened legal action that could have collapsed the inquiry if changes were not made.

Inquiry members yesterday agreed to make those changes.

Mr O'Flynn yesterday said he was 'happy' that a number of minor changes were made.

The changes were recommended by the inquiry's own legal team, after the requests from Mr O'Flynn and Mr Ronan that certain parts be removed.

One inquiry source said the changes were not exactly what the developers had sought, but that the amendments were made with their concerns in mind.

The inquiry has said that its final report is still on track to be issued by January 27th.

However Fine Gael TD Kieran O'Donnell says this does not mean it is watered down, and that the inquiry has been a worthwhile exercise.