Lagos — Senate President, David Mark, assessed the development in the nation's banking sector and concluded that poor supervision by the Central Bank of Nigeria (CBN) was responsible for the failure of some banks.

He spoke at the opening of a one-day public hearing on the Asset Management Corpora-tion of Nigeria (AMCON) Establishment Bill.

"We have found ourselves where we are today as a result of one thing: the Central Bank's inability to supervise the banks properly," he said .

"I recall that in Professor Chukwuma Soludo's time, we called the governor of CBN no less than three times to come and brief us when the economic melt-down started, and on each occasion, we were assured and re-assured that the situation in Nigeria was excellent and that there was no problem at all. â-‚Now we know better.

"So, I think that this is the point that we must note straight away. AMCON has become necessary because of the toxic debts that have been incurred by various banks; and, I believe very sincerely that if the supervision was alright, we would not have found ourselves running debts up to trillions of naira. I think that point is very important and we must note it."

Mark also said it was worrisome that while the banks were running the toxic debts, they were also declaring profits.

According to him, "What is even more disturbing is that while the banks were running these toxic debts, they were also declaring profits.

"Simply, I mean as an ordinary man, I cannot understand how you will owe so much debt and then you are dashing out money. It is never done in my place.

"There is a popular saying in my place that the man who owes does not give money to people. â-‚You must first clear your debts."

"But those banks had these debts and then fat profits and all of us were clapping for them because we didn't know the inside story," he further observed.