Minister affirms plan to incorporate bridge banks

[TGD]

 THE Attorney General of the Federation (AGF) and Minister of Justice, Adoke Mohammed Bello Adoke, has affirmed the decision of the regulators of the financial sector to incorporate the new (bridge) banks.

The three banks - Mainstreet Bank Limited, Keystone Bank Limited and Enterprise Bank Limited - acted as bridge banks initially to resolve the issues of the failing Afribank Plc, Bank PHB Plc and Springbank Plc.

A statement signed by the Chief Press Secretary to the AGF, Ambrose Momoh, said the attention of the minister has been drawn to the decision of the Nigerian Deposit Insurance Corporation (NDIC) on Friday, August 5, 2011 to incorporate the three bridge banks.

The letter stated: "The Central Bank of Nigeria CBN, NDIC and Asset Management Corporation of Nigeria (AMCON) have informed the AGF that the actions taken on the banks are for the ultimate interest of depositors and the safety as well as soundness of the Nigeria financial system.

"The AGF is aware that NDIC had composite consultation with CBN, the Ministry of Finance and the Ministry of Justice on these actions.

"The AGF also notes that the CBN, NDIC and AMCON acted in full appreciation of their functions and power under their respective statutory mandates and in particular, the protection of depositors and the system. He will continue to monitor these actions in order to ensure that the appropriate laws are complied with and due process is followed."

The CBN had supported the decision of the NDIC to exercise its statutory powers under the Nigerian Insurance Deposit Corporation Act, to establish Enterprise Bank Limited, Keystone Bank Limited, and Mainstreet Bank Limited as bridge banks, and by purchase and assumption agreements, cause all the deposit liabilities and certain other liabilities and the assets of Spring Bank Plc, Bank PHB Plc, and Afribank Nigeria, respectively to be assumed by the three bridge banks, effective August 5, 2011.



The Guardian