139:, or by liquidating its portfolio of assets, within two years, which can be extended by an additional year. Should the bridge bank fail to wind down its operations within the allotted time, the bridge bank must notify the Governor of the CBN of its intent to dissolve the bridge bank. Under this situation, the NDIC is appointed as the
89:
These tasks are carried out on a temporary basis (usually for no more than two or three years) to provide time to find a buyer for the bank as a going concern. If the bank cannot be sold as a going concern, its portfolio of assets are liquidated in an orderly fashion. Should the bridge bank fail to
197:
The Asset
Management Company of Nigeria (AMCON) immediately acquired from the Nigeria Deposit Insurance Corporation (NDIC), the three Bridge Banks. Accordingly, AMCON injected N679 billion into the Bridge Banks to meet the minimum capital base of N25 billion and the minimum
325:
193:
Under the arrangement, MainStreet Bank
Limited took over the assets and liabilities of Afribank; Keystone Bank Limited assumed the assets and liabilities of Bank PHB, while Enterprise Bank Limited took over that of Spring Bank.
273:
of assets, within two years, which can be extended for cause by an additional year. Should the bridge bank fail to wind down its operations within the allotted time, the bridge bank must notify the
111:(NDIC) administer the deposits and liabilities of a failed bank. Under the arrangement, the NDIC is authorized to operate a failed bank for a period until a buyer can be found for its operations.
315:
311:
170:
In their place, the CBN through the NDIC established Bridge Banks and transferred the assets and liabilities of the three affected banks to the Bridge Banks as follows;
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262:. To the extent possible, bridge banks are required to honor the commitments of the failed bank to its customers, and not to interrupt or terminate adequately
90:
wind down its operations within the allotted time, the national deposit insurance corporation is appointed as the receiver of the bridge bank's assets.
269:. Bridge banks are authorized to seek to liquidate failed banks, either by finding buyers for the bank as a going concern, or by liquidating its
17:
486:
386:
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assume such other liabilities of the closed bank as the
Corporation, in the Corporation's discretion, may determine to be appropriate;
417:
247:
purchase such assets of the closed bank as the
Corporation, in the Corporation's discretion, may determine to be appropriate; and
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234:(FDIC) is authorized to operate a failed bank for a period of up to three years, until a buyer can be found for its operations.
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Assuming the deposits of and honouring the commitments of the failed bank, so that service to retail clients is not disrupted
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When in the opinion of CBN, a NDIC-insured bank is in financial trouble, the CBN and NDIC may establish a bridge bank to;
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Perform any other temporary function which the
Deposit Insurance Corporation may prescribe in accordance with this Act.
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Assume such other liabilities of the closed bank as the
Deposit Insurance Corporation may determine to be appropriate;
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367:
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459:
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Under CEBA, when a FDIC-insured bank is in financial trouble, the FDIC "may establish a bridge bank to —
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Assuming other existing assets, liabilities or functions of the defunct bank at the discretion of the regulator
551:
255:
31:
135:
Bridge banks are authorized to seek to liquidate failed banks, either by finding buyers for the bank as a
274:
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perform any other temporary function which the
Corporation may prescribe in accordance with this Act."
326:
List of banks acquired or bankrupted in the United States during the 2007–12 global financial crisis
292:(DINB) is a related kind of institution that is strictly limited to management of insured deposits.
151:
On August 5, 2011, Central Bank of
Nigeria revoked the operating licenses of three banks including;
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Typically, the tasks of a bridge bank are to ensure seamless continuity of banking operations by:
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Servicing adequately secured existing loans to avoid their premature interruption or termination
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199:
27:
Institution created by a national regulator to operate a failed bank until a buyer can be found
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of the closed bank as the
Deposit Insurance Corporation may determine to be appropriate; and
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8:
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Korea
Deposit Insurance Corporation § Resolution of Failed Financial Institutions
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While national laws vary, the bridge bank is usually established by a publicly backed
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the bridge bank. Under this situation, the FDIC is appointed as the
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and provide an orderly transition avoiding negative effects such as
301:
160:
152:
69:
418:"Bridge banks: AMCON transfers ownership to Skye, Heritage Banks"
404:"Afribank & Co: AMCON acquires Bridge Banks, injects N679bn"
316:
List of banks acquired or bankrupted during the Great Recession
125:
312:
Government intervention during the subprime mortgage crisis
266:
307:
Financial services in Japan § Financial institutions
543:
484:Delegations of Authority: Enforcement Actions
384:Delegations of Authority: Enforcement Actions
241:assume the deposits of the closed bank;
118:Assume the deposits of the closed bank;
93:
14:
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480:Federal Deposit Insurance Corporation
380:Federal Deposit Insurance Corporation
232:Federal Deposit Insurance Corporation
109:Nigeria Deposit Insurance Corporation
456:Barron's Dictionary of Banking Terms
356:Barron's Dictionary of Banking Terms
146:
24:
254:Bridge banks must be chartered as
25:
568:
526:12 USC ch. 16, ss. 1821(n)(3)(B)
228:Competitive Equality Banking Act
205:
529:
290:deposit insurance national bank
64:and may be instituted to avoid
41:is an institution created by a
535:12 USC ch. 16, ss. 1821(n)(12)
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285:of the bridge bank's assets.
143:of the bridge bank's assets.
53:until a buyer can be found.
32:Bridge bank (disambiguation)
7:
513:, ss. 503. Codified at 12
441:, ss. 503. Codified at 12
406:. Vanguard. August 7, 2011.
295:
275:Comptroller of the Currency
18:Bridge bank (United States)
10:
573:
98:
29:
509:October 28, 2014, at the
493:, accessed July 12, 2008.
437:October 28, 2014, at the
393:, accessed July 12, 2008.
187:Enterprise Bank Limited
175:Mainstreet Bank Limited
105:Central Bank of Nigeria
200:capital adequacy ratio
222:and liabilities of a
181:Keystone Bank Limited
552:Financial regulation
517:ch. 16, ss. 1821(n).
445:ch. 16, ss. 1821(n).
230:(CEBA) of 1987, the
94:Operation by country
30:For other uses, see
420:. January 28, 2015.
258:in accordance with
62:financial regulator
489:2019-09-13 at the
389:2019-09-13 at the
216:banking regulation
43:national regulator
454:Thomas P. Fitch,
354:Thomas P. Fitch,
277:of its intent to
212:United States law
58:deposit insurance
16:(Redirected from
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202:of 15 per cent.
165:recapitalization
147:Historic example
103:In Nigeria the (
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189:(Spring Bank).
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124:Purchase such
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107:(CBN) and the
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47:central bank
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336:Zombie bank
224:failed bank
177:(Afribank),
157:Spring Bank
51:failed bank
39:bridge bank
546:Categories
342:References
271:portfolio
70:bank runs
507:Archived
487:Archived
462:, 2006:
460:Barron's
435:Archived
387:Archived
362:, 2006:
360:Barron's
302:Bad bank
296:See also
283:receiver
279:dissolve
220:deposits
161:Bank PHB
153:Afribank
141:receiver
264:secured
210:In the
99:Nigeria
502:CEBA,
466:
430:CEBA,
366:
159:, and
126:assets
267:loans
464:ISBN
364:ISBN
314:and
515:USC
443:USC
214:of
45:or
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470:).
382:,
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288:A
167:.
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