The former governor of the Central Bank says the European Central Bank (ECB) warned Ireland not to allow Anglo Irish Bank to collapse like Lehman Brothers.

John Hurley says Frankfurt was consulted in the days before the guarantee, and warned that Anglo could not be allowed to collapse.

That appears to conflict with comments from the former ECB president Jean-Claude Trichet, who denies calling Brian Lenihan and ordering him to save the bank.

Mr Hurley has told the Banking Inquiry that the instructions from the ECB were clear.

Earlier, Mr Hurley said better regulation would not have stopped the Irish banking crisis.

But he said it was up to the financial regulator - and not him - to make sure banks were operating properly.

He said the international climate meant Ireland's collapse would have happened, whether the banks were regulated or not.

This phase of hearings will run until the middle of September, with a total of 66 public hearings planned.

More than 90 witnesses will also be called to the public hearings.

Inquiry chairman Ciaran Lynch said: "This tranche will centre on the second phase of banks to come before the inquiry, the Oireachtas and international organisations".

"This phase of our hearings includes a move by the Committee to compelling witnesses and statements and the use of evidence," he added.

Watch the inquiry LIVE here: