A bridge bank is a temporary bank organized by the regulators (CBN & NDIC) to administer the deposits and liabilities of a failed bank. Under the arrangement, the Nigeria Deposit Insurance Corporation (NDIC) is authorized to operate a failed bank for a period until a buyer can be found for its operations. The Bridge Bank option is a veritable tool of enhancing depositor protection and promoting confidence by ensuring seamless continuity of banking operations. Clearly, when in the opinion of CBN, a NDIC-insured bank is in financial trouble, the CBN and NDIC may establish a bridge bank to; Bridge banks must be chartered as national banks. To the extent possible, bridge banks are required to honor the commitments of the failed bank to its customers, and not to interrupt or terminate adequately secured loans.