The Asset Management Corporation of Nigeria (AMCON), has announced new board appointments for the three bridge banks it acquired at the weekend from the Nigeria Deposit Insurance Corporation (NDIC).
The three bridge banks are Mainstreet Bank Limited, Keystone Bank and Enterprise Bank Limited.
The banks took over Afribank, BankPHB and Spring Bank on Friday.
AMCON in a statement issued by the Central Bank of Nigeria (CBN) yesterday in Abuja, said it obtained the approval of the apex bank for the board appointments.
Keystone Bank Limited has a former managing director of First Bank, Mr. Jacobs Moyo Ajekigbe as its chairman. The managing director is Mr. Oti Ikomi, and the executive directors are Mr. Shehu Abubakar, Mr. Demola Adewale, Mrs. Yvonne Isichei, Dr. Shehu K. Mohammed and Mr. Raphael Ereyi.
Mr. Falalu Bello is the chairman of the board of Mainstreet Bank. The managing director is Mrs. Faith Tuedor-Matthews, and the executive directors are Mr. Kola Ayeye, Mr. Abubakar Sadiq Bello, Mr. Bolaji Shenjobi, Mr. Anogwi Anyanwu and Mr. Roger Woodbridge.
Enterprise Bank Limited has Mr. Emeka Onwuka as its chairman.
Mr. Ahmed Kuru is the managing director while the executive directors are Mrs. Louisa Olalokun, Mrs. Nneka Onyeali-Ikpe, Mr. Aminu Ismail, Mr. Niyi Adebayo and Mr. Audu Kazir.
However, AMCON has concluded arrangements for the injection of N679 billion into the three banks today. The newly appointed boards are entrusted with the mandate to manage the banks to compete effectively in the Nigerian banking sector and provide quality service to customers.
The statement further said that the CBN has extended inter-bank guarantee to the three banks to December 31, 2011, just as it did to the four rescued banks that have signed Transaction Implementation Agreements (TIAs). Other members of the board, according to AMCON, will be announced soon.
Meanwhile, the Securities and Exchange Commission (SEC) yesterday suspended trading on the shares of Afribank, Spring Bank and BankPHB following the their takeover.
SEC also approved a technical suspension on the trading of Finbank, Intercontinental, Oceanic Bank and Union Bank shares, pending the completion of agreed recapitalisation deals.
Technical suspension means that trading on the shares can continue without any price movement.
A statement issued by SEC and signed by its head of media, Lanre Oloyi said: “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 explained that AMCON in fulfillment of its role as a resolution vehicle and pursuant to the provisions of the AMCON Act of 2010, signed an agreement with each of the three Bridge Banks. The agreements involve the acquisition and transfer of ownership with a promise to provide sufficient capital to restore the banks to the level of capital adequacy stipulated for their operations.
It adds: “The revocation of the licences of BankPHB, Afribank and Spring Bank, the acquisition of the bridge banks set up in their place and the injection of funds into the bridge banks by AMCON were actions taken to maintain market integrity.
“The SEC has approved the placement of the shares of Afribank Plc, Bank PHB Plc and Spring Bank Plc on full suspension. Full suspension means that there will be no trading on the shares of the said companies.
“The commission equally notes that in compliance with the CBN requirements for recapitalisation, Finbank Plc, Intercontinental Bank Plc, Oceanic Bank Plc and Union Bank Nigeria Plc have executed Transaction Implementation Agreements (TIAs) with core investors. To protect investors, the SEC has approved that the Nigerian Stock Exchange (NSE) should place the shares of these banks on technical suspension. Technical suspension means that trading on the shares can continue without any change in price.
“The commission remains committed to its mandate of investor protection and market development,” it stated.