REGULATOR'S VIEW:FINANCIAL REGULATOR Patrick Neary said he would not rule out putting his representatives on the boards of the banks.
"I won't rule out anything at this stage.
"I think it is important that whatever measures we put in place give confidence to the taxpayer in relation to the guarantee and that it is workable and pragmatic for both the regulator and for the banks," he said.
Fine Gael finance spokesman Richard Bruton welcomed the regulator's remarks and urged the Government to adopt an amendment to the legislation proposed by the party.
"Fine Gael sees this as a crucial element of the oversight required on behalf of taxpayers who will want to be reassured that their interests are being protected and that banks are not engaging in reckless lending or risky derivative trading," he said.
Mr Bruton said Fine Gael had given the Government's move to put the guarantee in place a "guarded welcome" but he urged the Minister for Finance to go "one step further" and ensure that the regulator was represented on the banks' boards.
European Commission president José Manuel Barroso said yesterday the fact that member states, acting together or alone, had rescued several European banks this week showed the existing system of regulation, based largely on national governments and regulators, could cope for now.
Mr Barroso declined to make specific proposals such as a single European financial regulator.