Saturday, September 22

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True reason CBN revoked Skye Bank's operation licence

by Staff writer



The Central Bank of Nigeria (CBN) on Friday revoked the licence of Skye Bank, and transferred its assets and liabilities to a newly licensed bridge bank called Polaris Bank.

According to CBN Governor, Mr. Godwin Emefiele, the decision to revoke the license of Skye Bank was due to failure of its shareholders to recapitalize the bank.


His statement read:

“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.

“The result of our examinations and forensic audit of the bank has, however, have revealed that the Skye bank requires urgent recapitalization 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 Management Company of Nigeria (AMCON) to capitalize the Bridge Bank and begin the process of sourcing investors to buy out AMCON. By this decision, the licence of the defunct Skye Bank is hereby revoked.

“We wish to assure all depositors that under this arrangement, their deposits shall remain safe and that normal banking services shall continue in the new bank on Monday, 24th September, 2018, to enable customers to transact their businesses seamlessly.

“Thus, all customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by 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 further disclosed that the shares of Skye Bank would be suspended on the Nigeria Stock Exchange henceforth till further notice.

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