Failures of City Express Bank
Date
2006
Journal Title
Journal ISSN
Volume Title
Publisher
Nigeria Deposit Insurance Corporation (NDIC)
Abstract
Background information; Overview of bank performance; Regulatory intervention; Core reasons for failure; Failure resolution; Lessons learnt and conclusion
Description
The bank was originally licenced as Industrial Bank Limited (Merchant Bankers) on 26th October 1988 to render merchant banking services. It was a Private Limited Liability Company promoted by a group of investors led by an entrepreneur. The bank commenced operations on 15th November 1988 from its corporate Head Office located in Victoria Island, Lagos. The bank took advantage of CBN’s policy of promoting competitive equity and fair competition by removing the dichotomy between Commercial and Merchant Banks. It therefore converted to commercial banking status on 9th July 1999 and its name was changed to City Express Bank Limited. The change of status enabled the bank to establish a network of 31 branches across Nigeria between 1999 and January 2006. It was also able to grow its volume of business at a faster rate.