The Central Bank of Nigeria (CBN) announced the takeover of Skye Bank. This was on Friday evening. It withdrew the operating licence of the bank after consultation with the Nigerian Deposit Insurance Corporation (NDIC)
Godwin Emefiele, CBN governor, said the CBN decided to establish a bridge bank, Polaris Bank
, to assume the assets and liabilities of Skye bank. He made known that the Asset Management Company of Nigeria (AMCON) would capitalize the bridge bank and begin the process of sourcing investors to buy out AMCON.
The customers of the former Skye bank seems not to be in a lost as the company assured that “all customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by Polaris Bank
Since 2016, Skye Bank has been under the watch of the CBN after the apex bank discovered some “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 CBN governor said because of the good performance of the board and management of the bank, they shall be given a second try by the CBN. All employees of Skye Bank will also be added by Polaris Bank under a new contract except any employee decides to opt out.
The basic facts about this new development include
→ Skye bank’s operating licence has been withdrawn effective from Friday.
→ On the 4th of July 2016, the CBN took a regulatory action on Skye Bank Nigeria PLC, leading 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 CBN’s regulatory action then was to save depositors’ funds and to ensure that the bank continued as a going concern, being a systemically important bank.
→ After the ‘regulatory action’, the CBN said the bank had improved but the result of its forensic audit of the bank revealed that Skye Bank requires urgent recapitalisation
→ The CBN, in consultation with the Nigerian Deposit Insurance Corporation (NDIC), has established a bridge bank that will survive the bank known as Polaris.
→ Effective Monday, all asset and liabilities of Skye Bank have been taken over by the new bridge bank, Polaris
→ The Asset Management Company of Nigeria (AMCON) is to capitalise the bridge bank and begin the process of sourcing investors to buy out AMCON.
→ All depositors’ deposits will remain safe and normal banking services will continue in the new bank on Monday, 24th September, 2018