Hence diversification of ownership is desirable as also ensuring fit and proper status of such owners and directors.
At the same time with diversified ownership, there is, perhaps, even greater concern over corporate governance and professional management, in view of this, apart from ensuring fit and proper considerations, in order to safeguard depositors interest and ensure systemic stability, the regulatory and supervisory framework has to ensure that banks have adequate capital to cushion risks that are inevitable in their operations, follow prudent and transparent accounting practices and are managed in accordance with the best practices for risk management.