Fg Takes Over Afribank,Bank PHB and Spring Bank

Owing to indications that the Afribank, Bank PHB and Spring Bank may not be able to recapitalise before the September 30th deadline set by CBN, the Central Bank of Nigeria has revoked their licenses. The aforementioned banks have been taken over by the Government under the Nigeria Deposit Insurance Corporation (NDIC) via  the “Bridge Bank” mechanism.

A bridge bank is a temporary bank organized by the regulators to administer the deposits  and liabilities of a failed bank. Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation, Alhaji Umar Ibrahim, disclosed at a press briefing in Lagos yesterday, that banking licences have been given to the three bridge banks  and their inter-bank obligations have been guaranteed until December 31, 2011 to ensure continued operations and customer confidence. He said that each bank will now answer the names of its respective bridge bank while  their management and staff are now contractually employees of the bridge banks. Hence Afribank has been renamed Main Street Bank Limited, Bank PHB is now to be called Keystone Bank Limited and Spring Bank is now  Enterprise Bank Limited. He said the law allows the Corporation to operate the bridge banks up to three years. The Asset Management Corporation of Nigeria (AMCON) is said to have injected an additional N678.5 billion to acquire the three banks taken over by the Nigeria Deposit Insurance Corporation (NDIC) on Friday.


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