CBN revokes Skye Bank’s licence, Polaris Bank to take over assets
The Central Bank of Nigeria has withdrawn the operating licence of Skye Bank.
Umaru Ibrahim, chairman of the Nigeria Deposit Insurance Corporation (NDIC), made this known to journalists on Friday.
Umaru said the NDIC in collaboration with the Central Bank of Nigeria (CBN) has approved that a bridge bank will be established.
Addressing journalists, Godwin Emefiele, CBN governor, said the bridge bank, Polaris Bank, will take on the assets and liabilities of Skye Bank.
“Consequently, Polaris Bank Limited has been issued operating licence by the CBN and shall commence banking business from today, Friday, 21st September,” Umaru said.
“The operating license of Skye Bank has been revoked by the governor of the Central Bank and the NDIC has commenced its liquidation.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 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 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, 24th September 2018, to ensure customers to transact their businesses seamlessly.”
The shares of Skye Bank will be temporarily suspended on the Nigerian Stock Exchange and Polaris Bank will begin operations on Monday in all Skye Bank offices.
I tot CBN had said the banking sector is insulated enough against bank failures. CBN should have continued to manage Skye Bank and spare unsuspecting customers another gale of suffering. This will bring a nagative multiplier effect in the banking sector.
In 2006 after the consolidation exercise, 3 S banks came up : Spring Bank, Skye Bank and Sterling Bank. Sterling Bank does its business quietly without noise, and they are still standing unlike Spring and Skye with so much publicity. A good market sells it’s self. Kudos to Sterling Bank
CBN and Skye Bank should resolved this matter o. Our money must not go like dat
I don’t think that it was the best moves, this will generate negative impact on the banking sector and everybody may be afraid…
I really missed my sky bank, preferable than this polaris of a thing
thank God, they even allow them to migrate to polaris bank if not, our savings might be at risk.
This bank isn’t better than others
Well I guess they all have a very good reason for changing names.
That’s good for them, they just need to improve better.
.this is one of the worse banks I have worked with
the bank network self is not even good.. just dey misbehave anyhow
Skye bank was better, polaris is trash
I don’t like any of the Banks
Good for them and thank God their operation is now stable as polaris bank, they are getting better.
I hate this bank.
serious I hate this bank.
Well they are all of same category, so no one should boost over the other..
why all this rubbish
Polaris bank service is great and even better than the time of skye bank.
its a pity
CBN these days self.
this is not Good at all
All the banks are not living up to expectations
I Dont just like Polaris Bank at all
Banking system in Nigeria, I don’t seems to understand
I just wish for comfort
Hmmmm, Am afraid to say this might generate negative Impact