New Bridge banks in Nigeria

The Federal Government
yesterday through the
Nigeria Deposit Insurance
Corporation (NDIC) assumed
ownership of Afribank,Bank PHB and Spring Bank
via the “Bridge Bank”. What does it mean?
This means the three banks will still be open to customers to
operate normally with the control of three bridge banks. What is a bridgebank?
A bridge bank is a
temporary bank organized
by the regulators to
administer the deposits and
liabilities of a failed bank. #Requirements of a bridgebank
*Bridge banks must be
chartered as national
banks. *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.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.
This is done to ensure
continued operations and
customer confidence. Will the affected banks be address by its name? No, each bank will now answer the names of their
respective bridge bank. What about the management of the banks?
The management
and staff are now
contractually employees of
the bridge banks.

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