Failure of Trade Bank PLC
Date
2012
Journal Title
Journal ISSN
Volume Title
Publisher
Nigeria Deposit Insurance Corporation (NDIC)
Abstract
Introduction; Overview of bank performance; Core reasons for failure; Failure resolution; Lessons learnt and conclusion
Description
Trade Bank Plc (the bank) was incorporated in 1985 and commenced commercial banking business in 1987 with a paid-up capital of N20million. The bank was promoted by the Kwara State Government as a core investor. Upon the creation of Kogi State, the two states jointly occupied the position of core investors. At inception, Government ownership stood at 30% while private investors held 70% equity interest. However, as at the closure of the bank in January 2006, the equity stake of Kwara and Kogi States had increased to 39.72% while private equity stake stood at 60.28%.