The SEC also approved a technical suspension on the trading of Finbank, Intercontinental, Oceanic Bank and Union Bank shares, pending the completion of agreed recapitalization deals.
A technical suspension means that trading on the shares can continue without any change in price.
The Nigerian central bank revoked the licenses of Afribank, Spring Bank and Bank PHB on Friday because it said they did not show the necessary capacity to recapitalize following a $4 billion bailout of nine lenders in 2009.
The central banks set up “bridge banks” to acquire the assets and liabilities of the failed lenders, who were then sold to state-owned asset management company AMCON.
AMCON announced on Sunday new board members of newly formed Keystone Bank Ltd, Mainstreet Bank Ltd. and Enterprise Bank Ltd. The chairmen and managing directors chosen all have experience managing other Nigerian lenders.
The state ‘bad bank’ said it has concluded arrangements for the injection of 679 billion naira ($4.46 billion) into these three banks tomorrow via bond issues.
AMCON said on Saturday it plans to recapitalize the failed banks and run them for a period of 2-3 years before finding suitable investors.
AMCON was set up last year to absorb bad bank loans, exchanging them for government-backed bonds, with the aim of rebuilding commercial bank balance sheets.
In 2009, the central bank bailed out nine banks that auditors deemed to be so badly capitalized they posed a risk to sub-Saharan Africa’s second-largest economy. The banks were poorly managed and had over exposure to the capital and oil markets during the global financial crisis.
Finbank, Intercontinental, Oceanic and Union have signed recapitalization agreements with new investors.
