Regulators, operators to share in bank losses ' Reps

The House of Representatives Committee on Banking and Currency said on Thursday that regulators and operators of the banking sector might be asked to share in the losses of failed banks as a measure to strengthen the system.The committee, which is headed by Mr. John Onyereri, noted that when operators and regulators shouldered part of the losses, they would be forced to strengthen their monitoring responsibilities.The committee had met with the Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, in Abuja, where he briefed members on the measures the apex bank took during the crisis that hit the sector lately.Sanusi told the committee that the CBN interventions had helped in stabilising the sector and rescuing depositors funds.But, giving the opinion of the committee, Onyereri said that the committee was looking into other measures, including the possibility of operators and regulators of the sector taking part in the sharing of the losses.He added, "This committee shall promote debate on all aspects and shades of opinion on the best way forward for our system and ensure that the burden of cost of regulation is equitable."Operators and regulators must come up with how they intend to balance authority with responsibility."Onyereri said, "It is time for regulators and operators to provide a reasonable undertaking that they will act diligently and professionally at all times."We shall demand that regulators and operators sign an undertaking to uphold professionalism and due diligence.""We shall seek to know how regulators and operators intend to share part of losses arising from bank failures," he added.
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