Keystone Bank has survived shakeups but not without scars

Key takeaways

  • Bank PHB was among the banks flagged in the 2009 CBN/NDIC audit for capital inadequacy and governance failures.
  • Despite regulatory interventions, it failed to recapitalise by the September 30, 2011 deadline, leading to its license revocation.
  • The CBN and Nigeria Deposit Insurance Corporation (NDIC) established Keystone Bank as a bridge bank to take over Bank PHB’s assets and liabilities.
  • The Asset Management Corporation of Nigeria (AMCON) managed Keystone Bank until 2017, when it was sold to private investors.
  • The bank later divested from its international subsidiaries, focusing on the domestic market.
  • In 2024, the CBN dissolved its board, signalling ongoing financial and governance concerns.

Keystone Bank was established in 2011 as a bridge bank after Bank PHB failed to recapitalise following the 2009 banking audit. The CBN revoked Bank PHB’s license, transferring its assets and liabilities to Keystone Bank under AMCON’s management. This move aimed to maintain banking stability while seeking new investors.

In 2017, Keystone Bank was sold to private investors, marking its transition from state ownership. Over time, it divested from its international subsidiaries, refocusing on the Nigerian market. However, by 2024, the CBN dissolved the board and management of three banks, including Keystone Bank, for non-compliance with sections of the banking legislation.

Source:

Keystone Bank, Media Reports

Period:

2005-2025
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