Afribank New Name: Main Street Bank And Skye Bank:
According To Vanguard News:
FG takes over Afribank, Bank PHB, Spring Bank:
The Federal Government through the Nigeria Deposit Insurance Corporation (NDIC) assumed ownership of Afribank, Bank PHB and Spring Bank via the “Bridge Bank” mechanism following the revocation of their licences by the Central Bank of Nigeria (CBN).
This means the three banks will still be open to customers and continue to operate normally under the control of three bridge banks created by the NDIC to assume their assets.
The Bridge Banks are Enterprise Bank Limited to assume assets of Spring Bank, Keystone Bank Limited to assume assets of Bank PHB, and MainStreet Bank Limited to assume assets of Afribank.
A bridge bank is a temporary bank organized by the regulators to administer the deposits and liabilities of a failed bank . Bridge banks must be chartered as national banks . To the extent possible, bridge banks are required to honour the commitments of the failed bank to its customers, and not to interrupt or terminate adequately secured loans . Bridge banks are authorized to seek to liquidate failed banks, either by finding buyers for the bank as a going concern, or by liquidating its portfolio of assets, within two years, which can be extended for cause by an additional year.
Managing Director/Chief Executive, Nigeria Deposit Insurance Corporation, Alhaji Umar Ibrahim, who disclosed this at a press briefing in Lagos yesterday, said the CBN has granted banking licences to the three bridge banks and have guaranteed their inter-bank obligations until December 31, 2011 to ensure continued operations and customer confidence.
He said that each bank will now answer the names of their respective bridge bank while their management and staff are now contractually employees of the bridge banks. He said the law allows the Corporation to operate the bridge banks up to three years. Learn More On vanguardngr.com.
Also Read: access bank sort codes abuja.
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