The pivotal role of banks to the development of the national economy is generally acknowledged. The banks play the role of financial intermediation, by which they mobilize surplus funds in form of deposits which are then channeled to entrepreneurs in form of loans and advances for business development, giving rise to employment, wealth creation and growth. Banks also promote trade and commerce both locally and internationally through the payment system, hence, banks are considered the engine room and live wire of the economy. That informed the robust legislation and regulatory standards imposed on banking business considering the fact that uncontrolled bank failure could be disastrous for the economy. The focus of the regulatory and supervisory framework however, seems to be skewed in favour of the protection of the depositors and the banking system. However, a key issue has been the extent to which those responsible for bank failure especially the directors have been held accountable. This paper examined the current legal framework to determine the extent to which directors are liable for bank failure. The evaluation revealed that while legal sanctions have been prescribed for breach of directors’ civil duties and they could also be criminally liable for violations of extant laws which could have contributed to bank failure, there is no direct liability for bank failure per se. It is posited that given the acknowledged importance of banks and the dire consequences of their failure, directors should be held legally accountable for the failure of their banks.