The Central Bank of Nigeria (CBN) has withdrawn the operating license of Skye Bank.
CBN Governor, Godwin Emefile announced the decision of Friday evening in Lagos.
Polaris Bank has been established to assume ownership of the assets and liabilities of Skye Bank. The Nigeria Deposit Insurance Corporation has injected N786bn in the new bank.
The management of the defunct bank was however retained for its good performance.
The defunct Skye Bank has been on CBN’s lifeline since July 2016 and the apex bank says it can no longer continue to intervene to keep the balance liquid.?
Emefiele said while the purpose of the CBN’s intervention in Skye Bank on July 4th 2016 has been achieved the decision to revoke the license of Skye Bank was due to failure of its shareholders to recapitalise the bank.
He said: “The focus of the action then was to save depositors’ funds and to ensure that the bank continued as a going concern, being a systemically important bank. Part of our intention was also to stem the imminent job losses to staff if a liquidation option had been adopted.
These objectives have been fully achieved and the bank has been able to meet customer obligations, having curtailed the liquidity haemorrhage and restored depositor confidence.
Indeed, the bank’s performance has improved considerably compared to the pre-July 2016 era.
“The result of our examinations and forensic audit of the bank has, however, have revealed that the Skye bank requires urgent recapitalisation as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN. The shareholders of the bank have been unable to recapitalize it.
“As a responsible and responsive regulator and in consultation with the Nigerian Deposit Insurance Corporation(NDIC), we have decided to establish a bridge bank, Polaris Bank, to assume the assets and liabilities of Skye bank. The strategy is for the Asset Manage.
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Anuforo Osinachi James
Kudos to CBN & NDIC...I hope that other regulatory agencies in Nigeria will be proactive as this. Not forgetting the immense role CPC & NCC has played thus far.
