- Category: Business and Economy
- Published on Monday, 08 August 2011 08:57
- Written by Admin
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Mainstreet Bank Limited, which has taken over the assets and liabilities of the old Afribank, now has Alhaji Falalu Bello as the Chairman with Mrs Faith Tuedor-Matthews as Managing Director. Bello recently retired as managing director of Unity Bank, while Mrs Tuedor-Mathews was a deputy managing director at UBA. The bank got five Executive Directors, namely Mr Kola Ayeye, Mr Abubakar Sadiq Bello, Mr Bolaji Shenjobi, Mr Anogwi Anyanwu and Mr Roger Woodbridge.
As for Enterprise Bank Limited, successor to the old Spring Bank, Mr Emeka Onwuka is the new Chairman, while Malam Ahmed Kuru is the Managing Director. The Executive Directors are Mrs Louisa Olalokun, Mrs Nneka Onyeali-Ikpe, Mr Aminu Ismail, Mr Niyi Adebayo and Mr Audu Kazir.
Last Friday, the Nigeria Deposit Insurance Corporation (NDIC) established Enterprise Bank Limited, Keystone Bank Limited and Mainstreet Bank Limited as Bridge Banks for the three banks whose licenses were revoked that day by the Central Bank. Going by the Purchase and Assumption Agreements, all the deposit liabilities and certain other liabilities and the assets of Spring Bank Plc, Bank PHB Plc, and Afribank Nigeria are respectively to be assumed by the 3 Bridge Banks.
Spring Bank Plc, Bank PHB Plc and Afribank Nigeria were among the troubled banks given a deadline by the Central Bank of Nigeria (CBN) to recapitalize by September 31. Last Friday’s action was a pre-emptive one by the regulatory authorities because the three were nowhere near finding investment suitors as the recapitalisation deadline loomed. At the weekend, AMCON also injected N679 billion into them after acquiring them from the NDIC. A statement from AMCON said it has concluded arrangements for the injection of N679 billion into these three banks today.
The Central Bank of Nigeria has granted the same interbank guarantee as it did to the banks that have signed Transaction Implementation Agreements (TIAs) until December 31 2011. The banks are therefore fully capitalized, strengthened and well positioned for future growth.
“The newly appointed boards are entrusted with the mandate to manage these banks along best commercial practice to compete effectively in the Nigerian banking sector and provide quality service to customers. Depositors are again assured that their deposits are safe, and employees are also assured of seamless continuity of business operations and job functions. Other members of the board will be announced imminently,” it said.
Meanwhile, the Securities and Exchange Commission (SEC) at the weekend placed full suspension the shares of Afribank, BankPHB and Spring bank following their nationalisation and subsequent acquisition by AMCON. The three banks are now known as Bridge banks.
The commission also approved that the Nigerian Stock Exchange (NSE) place on technical suspension the shares Finbank Plc, Intercontinental Bank Plc, Oceanic Bank Plc and Union Bank Nigeria Plc who have executed Transaction Implementation Agreements (TIAs) with core investors in compliance with CBN requirement with aim at protecting investors’ confidence.
SEC in a statement yesterday said the suspension of the shares of the bridge banks was a consequence of the actions of the Nigeria Deposit Insurance Corporation (NDIC), the Central Bank of Nigeria (CBN) and the Asset Management Company of Nigeria (AMCON) and to maintain market integrity.
With full suspension, there will be no trading on the shares of the said companies while those on technical suspension, there will be trading on the shares without any change in price.
SEC described the actions of the regulatory agencies and AMCON as very significant. “The Securities and Exchange Commission (SEC) wishes to state that the actions of the Nigeria Deposit Insurance Corporation (NDIC), the Central Bank of Nigeria (CBN) and the Asset Management Company of Nigeria (AMCON) are significant steps towards the resolution of the banking crisis. Indeed, the Commission believes these actions will accelerate the recovery of the Nigerian capital market,” the statement said.