The objective is to sell the bridge banks
in an open and non-discriminatory process with the aim to maximise the sales price.
The compromise version calls for obliging failed banks to choose one of two options -- let the government make a forced purchase of all of its common shares or come under government administration by becoming bridge banks
Under the bills, bridge banks
would be government-controlled banks that would replace commercial banks facing imminent collapse.
All these three banks which were acquired through bridge banks
were sold to AMCON by the deposit insurer.
Finance Minister Kiichi Miyazawa on Friday asked the opposition camp to revise a key part of its bank-resolution scheme calling for liquidating failing banks, rather than allow such banks to be permanently transformed into bridge banks
The establishment of bridge banks
to take over failed financial institutions is the centerpiece of the government's plans for financial revitalization released July 2, which aims to salvage the financialsystem from the bad-loan mess.
NASDAQ-NMS: CFBI) announced today that The Frost National Bank of San Antonio, its wholly-owned subsidiary, has agreed to purchase New First City, Texas-San Antonio and New First City, Texas-Austin, two of the bridge banks
established by the FDIC following the closing of banks owned by First City Bankcorporation of Texas, Inc.
The Asset Management Company of Nigeria (AMCON) has bought three Bridge Banks
from the Nigeria Deposit Insurance Corporation (NDIC), for assuming the assets of former Afribank, Bank PHB and Spring Bank.
As part of the proposed system, the government will transform insolvent banks into state-controlled bridge banks
entrusted with continuing to lend, take and refund deposits until private banks make a purchase offer for the bridge banks
are government-controlled banks intended to replace commercial banks facing imminent collapse.
The opposition has rapped this clause as virtually allowing the Finance Ministry as an adviser to the premier to use its discretionary powers to allow insolvent major banks to continue operations without being transformed into bridge banks
The bill would allow bridge banks
to operate for up to five years under government management to allow prospective purchasers of the banks time to assess the quality of the banks' bad loan portfolios and make a purchase offer.