15 November 2018
Komorebipost
Africa Nigeria World News

Skye Bank Licence Revoked By CBN, Polaris Bank Takes Over

The operational licence of Skye Bank Plc has been revoked by the Central Bank of Nigeria with immediate effect.The Governor of Central Bank, Godwin Emefiele, disclosed this in a press conference in Lagos, Nigeria.He said Skye Bank would be taken over by Polaris Bank and also all the assets and liabilities of the defunct entity.Emefiele said the decision was reached following the inability of the bank owners to shore up the capital of the distressed bank which had earlier received a N350 billion naira intervention in July 2016.

“ Skye Bank requires urgent recapitalization as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN.

“ We have decided to establish a bridge bank, Polaris Bank to take over the assets and liabilities of Skye Bank.

“ The strategy is for AMCON to capitalise the bridge bank and begin the process of sourcing investors to buy out AMCON.

“ By this decision the licence of Skye Bank is hereby revoked” he said.

The management of the distressed Skye Bank would be retained to continue to manage the newly licenced Polaris Bank.

According to the CBN governor, the good performance of the board and management the CBN shall retain them.

Emefiele further said that, based on the discussion with the Nigerian Stock Exchange, the shares of the distressed Skye Bank would be suspended from trading on the capital market until discussions are concluded.

Emefiele concluded that the 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.

 

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Justy Oteri

Justy Oteri

Contact Justy at justyoteri@gmail.com.

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