Panic As CBN, NDIC Revoke Skye Bank Licence •Inject N786 Bn, Now Polaris Bank

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Panic As CBN, NDIC Revoke Skye Bank Licence •Inject N786 Bn, Now Polaris Bank

Panic As CBN, NDIC Revoke Skye Bank Licence •Inject N786 Bn, Now Polaris Bank

The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance (NDIC), on Friday, revoked the licence of Skye Bank PLC  and injected N786 billion into the new lender.

The lender has been taken over by the Assets Management Corporation of Nigeria (AMCON) under a bridge bank arrangement.

Announcing the development to newsmen, the Managing Director NDIC, Alhaji Umaru Ibrahim, said this was in continuation of CBN’s intervention in the distressed bank.

He said the Polaris Bank, which will now exist in every branch of the defunct Skye Bank will equally retain all employees of Skye Bank as new employees.

Recalled that on 4th July 2016, CBN took a regulatory action on Skye bank Nigeria PLC.

This action led to the resignation of the chairman, all non-executive directors on the Board as well as the Managing Director, Deputy Managing Director and the two longest-serving Executive Directors on the Management Team

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.

Also speaking, the Central Bank Governor, Mr Godwin Emefiele, said the objective of the 2016 intervention has been achieved, adding, “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.”

He said the bank’s performance has improved considerably compared to the pre-July 2016 era, and assured depositors and the general public that their funds were safe and “there is no course for alarm.”

Emefiele stated that the result of the bank’s examinations and forensic audit of the bank revealed that Skye bank required 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.

The new arrangement therefore means that the former shareholders of Skye Bank have lost their investment, while the prospective new investors would become new owners of Polaris Bank.

“Given the good performance of the board and management, the CBN shall retain them.  In addition, all employees of Skye Bank shall be absorbed by Polaris Bank under a new contract unless any employee decides to opt out.

“We wish to assure the general public that the Nigerian banking industry remains safe and resilient and that the CBN will continue to live up to its responsibilities of promoting stability in the banking and financial system,” Emefiele said.

Source: https://www.tribuneonlineng.com/165429/

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