CBN Withdraws The Operating Licence Of Skye Bank

After a long period of telling Nigerians that all Deposit Money Banks (DMBs) in Nigeria are sound, the Central Bank of Nigeria (CBN) has finally withdrawn the operating licence of Skye Bank. Late on Friday, Umaru Ibrahim, chairman of the Nigeria Deposit Insurance Corporation (NDIC) came out with the truth as the regulatory bodies decided to make it public that they cannot continue to manage a bad situation.

Umaru said the NDIC in collaboration with the CBN has approved that a bridge bank be established. Also addressing journalists, the governor of Nigeria’s central bank, Mr. Godwin Emefiele, said the bridge bank, which has been named Polaris Bank Limited, will henceforth take on the assets and liabilities of former Skye Bank.

Umaru in explaining the details said, “Consequently, Polaris Bank Limited has been issued operating licence by the CBN and shall commence banking business from today (Friday September 21, 2018). The operating license of Skye Bank has been revoked by the governor of the Central Bank and the NDIC has commenced its liquidation. The capitalisation of Polaris Bank Limited is being done by the Assets Management Corporation of Nigeria (AMCON) through the injection of about N786 billion to return the bank to soundness and profitability so as to enable its subsequent sale to credible and financially sound third-party acquirers.”

Emefiele said that although the bank’s performance improved after July 2016 when the Assets Management Corporation of Nigeria (AMCON) and the CBN stepped in. “The result of our examinations and forensic audit of the bank revealed that the Skye Bank requires urgent recapitalisation as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN. 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 September 24, 2018, to ensure customers to transact their businesses seamlessly.”

Meanwhile, gathered that the shares of Skye Bank will be temporarily suspended on the floor of the Nigerian Stock Exchange (NSE) and Polaris Bank Limited will begin operations on Monday in all Skye Bank offices nationwide. As at press time, all efforts to reach Mr. Ahmed Lawan Kuru, the Managing Director/Chief Executive Officer of AMCON proved abortive as his phone line was switched off.

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