The Central Bank of Nigeria (CBN) has withdrawn the operating license of Skye Bank. CBN Governor, Godwin Emefiele, who announced the decision on Friday evening in Lagos said depositor’s funds remain safe.
It is reported that 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.
According to CBN, “You will recall that on 4th July 2016, we took a regulatory action on Skye bank Nigeria PLC. Specifically, 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 2.
“At that time the proactive action was informed by unacceptable corporate governance lapses as well as the persistent failure of Skye Bank PLC to meet minimum thresholds in critical prudential and adequacy ratios, which 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 haemorrhage and restored depositor confidence.”
CBN noted that all customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by Polaris Bank.