Mainstreet Bank Shareholder funds Hit N285 Billion

August 14,2011 – Mainstreet Bank says its shareholders’ fund has risen through the injection of N285 billion by the Assets Management Corporation of Nigeria (AMCON).

This was disclosed on Friday in a statement by its Head of Corporate Affairs Department, Moshood Isamotu.

“With the injection of the fund, the bank now has capital adequacy ratio above the regulatory 10 per cent set by the Central Bank of Nigeria (CBN). With this, Mainstreet Bank had become one of the most capitalised banks in the country with this fresh injection of fund by AMCON,” he stated.

Isamotu said that the bank, on Tuesday, August 9, repaid the N50 billion tier-two capital obtained by the defunct Afribank Nigeria Plc, on August 14, 2009. He also added that the current capital adequacy position of the bank has positioned it to compete with similar institutions and grow quality risk assets and support the real sector.

The CBN had, last week, revoked the license of Afribank and two other banks rescued in a $4 billion 2009 bailout because they did not show the necessary capacity and ability to recapitalise before the September deadline.

Mainstreet Bank was established to acquire all assets and liabilities of Afribank in the interest of depositors and to prevent possible liquidations on August 5 because of its poor shareholders’ fund. by Daily Times