Why CBN Revoked Skye Bank’s Licence As Polaris Bank Takes Over
Abuja, Nigeria News 21st September, 2018: The Central Bank of Nigeria has revoked the operating licence of Skye Bank Plc with immediate effect.
Governor of Central Bank, Godwin Emefiele, disclosed this during a press briefing in Lagos on Friday.
He said that Skye Bank would now be taken over by Polaris Bank, which would take over all the assets and liabilities of the defunct entity.
Emefiele said the decision had been reached following the inability of the owners of the bank to shore up the capital of the distressed bank which had earlier received a N350 billion 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 assume 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.
Also, the management of the distressed Skye Bank would be retained to continue to manage the newly licenced Polaris Bank.
According to the CBN governor, given the good performance of the board and management, the CBN shall retain them.
Also, Emefiele said based on 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.
The CBN Governor said the bank took a regulatory action on Skye Bank Nigeria Plc on July 4, 2016,
Emefiele said 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.
Punch Newspaper
To Receive Free News Updates, Add To Your WhatsApp: 0802 739 7554; To Publish Your Articles Or News Stories, Email editor@skytrendnews.com.
READ ALSO! More Nigerians Becoming Extremely Poor, 40% Of World’s Poorest To Live There And Congo By 2050
READ ALSO! Why Ambode Cannot Be Lagos Governor For 2nd Term — Tinubu
READ ALSO! More Nigerians Now Living In Extreme Poverty — International Labour Congress
READ ALSO! 10million More Nigerians Have Been Lifted From Poverty Under Buhari — Presidency Says
READ ALSO! Buhari Reacts To Boko Haram’s Threat To Kill Leah Sharibu
READ ALSO! More Nigerians Getting Killed, Getting Poorer, Hungrier Under Buhari’s Incompetent Regime — PDP
READ ALSO! 10million More Nigerians Have Been Lifted From Poverty Under Buhari — Presidency Says
READ ALSO! More Nigerians Travelling Out Due To Economic Hardship, Over 500,000 Since 2016
READ ALSO! The Smart CEO: Top 5 Websites To Get Cheap Domain Name Registration
READ ALSO! More Nigerians In Kano, Katsina Now Using Hard Drugs — Group Says
READ ALSO! More Nigerians Dying Hourly From Tuberculosis, 18 Every Hour — WHO
READ ALSO! Between GoDaddy And Namecheap: Making The Best Choice For Domain Name Registrar
READ ALSO! Nigeria Couples: Now You Can Know If Your Partner Is Cheating On You; SEE 11 SURE Ways