CBN LIQUIDATES SKYE BANK

LAGOS, Nigeria – Skye Bank Nigeria Plc is now history, following liquidation of the bank by Central Bank of Nigeria, CBN. Polaris Bank will now replace it with customers’ funds intact.Central Bank of Nigeria made the revelation in a statement signed by Governor of CBN, Mr. Godwin Emefiele. According to him, the option of liquidation was foreclosed in 4th July 2016 to save job losses adding that indeed, the bank’s performance has improved considerably compared to the pre-July 2016 era.

He explained that the result of examinations and forensic audit of the bank has, however, revealed that 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 the bank. 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”, CBN said.

“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”, CBN added.

The bank said 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, the governor said 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”, the bank said.