Why We Revoke Skye Bank Licence -CBN

The operating license of the Skye Bank has been revoked following persistent poor performance based on the CBN’s criteria.

The Governor of the Central Bank of Nigeria (CBN), Mr Godwin I. Emefiele disclosed this in a statement released to pressmen yesterday.

On 4th July 2016,  the Skye bank Nigeria PLC was snactioned by the Apex bank because of some unacceptable corporate governance lapses and persistent failure by Skye Bank to meet  minimum threshold in critical prudential and adequacy ratios.

The CBN’s 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.

According to Mr Enefiele, the focus of the action then was to save depositors funds and to ensure that the bank continued as a going concern and 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” he said.

The Mr Emefiele also noted that the result of CBN’s 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 recapitalize it.

“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.

“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” the CBN Governor stated.

He also said that all customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by Polaris Bank and the management and all employees of Skye Bank shall be absorbed by Polaris Bank under a new contract unless any employee decides to opt out.

Mr Emefiele assured 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.