Sky Bank Now Polaris Bank As Skye Bank’s Licence is Revoked

Sky Bank Now Polaris Bank As Skye Bank’s Licence is Revoked

The Central Bank of Nigeria (CBN) yesterday revoked the operating licence of Skye Bank Plc exactly 27 months after its intervened in the ailing bank.

However, in order to avoid a run on the bank, the CBN in consultation with the Nigeria Deposit Insurance Corporation (NDIC) have immediately established and licenced Polaris Bank, to assume all assets and liabilities of the defunct Skye Bank.

In addition, a total of N786 billion has been injected into the new bank.

The CBN and the NDIC disclosed this at a joint media briefing in Lagos.

Addressing journalists, CBN Governor, Mr. Godwin Emefiele said the strategy would be for the Asset Management Company of Nigeria (AMCON) to capitalise Polarise Bank and begin the process of sourcing investors to buy out AMCON.

He recalled that on 4th July 2016, the central bank took regulatory action on Skye Bank.

Specifically, the intervention by the regulator then, had led to the resignation of the erstwhile chairman of the bank, all non-executive Directors on the board as well as the Managing Director, Deputy Managing Director and the two longest-serving Executive Directors on theManagement Team at that time.

According to him, at that time, the action was informed by unacceptable corporate governance lapses as well as the persistent failure of Skye Bank to meet minimum thresholds in critical prudential and adequacy ratios, which then culminated in the bank’s permanent presence at the CBN lending window.

“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 hemorrhage and restored depositor confidence.

“Indeed, the bank’s performance has improved considerably compared to the pre-July 2016 era,” Emefiele said.

Continuing, the central bank governor said the result of recent examinations and forensic audit of the bank however, 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 recapitalise it.

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