Bridge Banking In Nigeria

BRIDGE BANKING IN NIGERIA A connect avow is a temporary coast make by the regulators (CBN & NDIC) to give the deposits and liabilities of a failed affirm. Under the arrangement, the Nigeria luck up indemnity alliance (NDIC) is current to operate a failed swear for a tip until a buyer stinkpot be found for its operations. The coer hope option is a veritable tool of enhancing depositor fortress and promoting self-assurance by ensuring seamless continuity of slanging operations. Clearly, when in the judicial decision of CBN, a NDIC-insured patois is in financial trouble, the CBN and NDIC may base a brace over lodge to; * look at the deposits of the unappealing bank; * Assume such(prenominal) otherwise liabilities of the closed bank as the cleave amends Corporation may receive to be entrance; * get such assets of the closed bank as the nonplus Insurance Corporation may consider to be take over; and * Perform any other temporary function which the stick Insurance Corporation may prescribe in amity with this Act. link banks must be chartered as contract banks. To the extent possible, bridge banks argon required to honor the commitments of the failed bank to its customers, and non to interrupt or terminate adequately secured loans.

Bridge banks are authorized to hear to liquidate failed banks, either by finding buyers for the bank as a going concern, or by liquidating its portfolio of assets, deep down twain years, which can be extended by an additional year. Should the bridge bank fail to involved down its operations within the allotted time, the bridge bank must notify the regulator of the CBN of its intent to dissolve the bridge bank. Under this situation, the NDIC is appointed as the receiver of the bridge banks assets In the Nigeria case, the Central Bank of Nigeria (CBN) on August 5, 2011, revoked the operating licenses of three-fold banks including; Afribank, Spring Bank, and BankPHB, which according to it, they did not shown enough capacity...If you want to hollow a full essay, rig it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper