Bridge Bank

(redirected from Bridge Banks)

Bridge Bank

In the United States, a bank the FDIC has declared insolvent and has taken over. A bridge bank is separately incorporated from the original bank, which ceases its function altogether. The FDIC administers deposits and loans for the bridge bank for up to three years, until a buyer is found or the bank's operations wind down. A bridge bank must be registered as a national bank.
References in periodicals archive ?
However, the experience of the NDIC in the management of the Bridge Banks it previously established, have been highly successful.
Polaris Bank, a means to a better end -NDIC
The Italian authorities proposed resolution plans for the banks that foresee the resolution of each bank and the immediate creation and capitalisation of four temporary bridge banks. All of the banks' assets and liabilities, except remaining equity and subordinated debt, will be transferred to these bridge banks.
Belgium : State aid: Commission approves resolution plans for four small Italian banks Banca Marche, Banca Etruria, Carife and Carichieti
Regulators are pushing for the authority to put up special purpose vehicles called bridge banks, which will ensure that bank services to the public will not be disrupted even if an institution has been ordered closed.
BSP proposes wider, more potent powers for PDIC
The nationalised lenders will now be run by three bridge banks. These are Keystone Bank, Mainstreet Bank and Enterprise Bank.
-Nigeria's Amcon assumes 3 rescued banks
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.
LDP unveils revised plan for banking system stability
Under the bills, bridge banks would be government-controlled banks that would replace commercial banks facing imminent collapse.
Obuchi shows flexibility over gov't's 6 financial bills
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.
NIGERIA : AMCON buys three Bridge Banks from NDIC
Bridge banks would basically provide an acquiring bank with two years to assess the quality of the loan portfolio held by the bridge bank.
LTCB will fail unless it gets public money: Miyazawa
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.
Obuchi vows to appoint 'competent, reliable' MOF chief
All these three banks which were acquired through bridge banks were sold to AMCON by the deposit insurer.
NIGERIA : Asset Management Corporation of Nigeria to invest N678.5 bn to buy three banks
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.
Miyazawa asks opposition not to wind up failing banks
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.
Kishi warns gov't against artificially inflating prices
Financial browser ?
Full browser ?