Nationalised Banks, One Year After

Via...Thisday, 08 Aug 2012

 Exactly four days from today, the three nationalised banks – Enterprise Bank Limited, Keystone Bank Limited and Mainstreet Bank Limited – would have operated for one year.

The aforementioned commercial banks were established following the revocation of the operating licenses of former Spring Bank, Bank PHB and Afribank, in that order. The exercise was jointly carried out by the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) through the ‘bridge bank’ concept. A bridge bank is a temporary bank established and operated by financial regulators to acquire the assets and liabilities of a failed bank to facilitate its resolution.

According to the regulators, the action was taken earlier than the September 30 deadline, because the then troubled banks, unlike their peers, did not show any capacity recapitalise before the deadline.