Nigeria appoints managers for rescued banks

The Asset Management Corporation of Nigeria (AMCON) on Sunday appointed new managers to run three struggling banks it has taken over under plans to inject fresh capital into them. The government on Friday announced the takeover of Afribank Plc, Bank PHB and Spring Bank because they are not able to raise the fresh capital they need on their own by a September 30 deadline. The assets and liabilities of the failed banks were transferred to three new "bridge banks" -- Enterprise Bank Limited, Keystone Bank Limited and MainstreetBank. "The newly appointed boards are entrusted with the mandate to manage these banks along best commercial practice to compete effectively in the Nigerian banking sector and provide quality service to customers," AMCON said in a statement. "Depositors are again assured that their deposits are safe and employees are also assured of seamless continuity of business operations and job functions," it said. AMCON said it has made arrangements to injection 679 billion naira (around 4.5 billion dollars) into the three banks on Monday and said the banks are now fully capitalised, strengthened and well positioned for future growth. AMCON was established last year by the Central Bank of Nigeria (CBN) to hold the bad assets in the banking system while the good assets were separated out in an effort to put the sector back on its feet.