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Skye Bank Licence Revoked As Polaris Bank Takeover, Says Central Bank

Unic Press UK: The Central Bank of Nigeria (CBN) in consultation with the Nigerian Deposit Insurance Corporation (NDIC) has established a new bank, Polaris Bank, to assume the liabilities and assets of the now defunct Skye Bank.

The regulatory body’s decision to revoke the licence of Skye Bank is hinged on corporate governance lapses of Skye Bank, including poor prudential/adequacy ratios, an acute liquidity crisis that drives the bank’s persistent dependency on debt for its day-to-day operation.

In a Press Statement today, the CBN governor Godwin Emefiele, who made a reference to the events of July 2016 by which the regulatory body focused on saving depositors’ funds and ensuring that the bank continued as a going concern, and acknowledged considerable progress said: “the result of our examinations and forensic audit of the bank has, however, have 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.” The CBN is hopeful that the  Asset Management Company of Nigeria (AMCON) will capitalize the Polaris Bank, then find suitable investors to takeover.

“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. Thus, all customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by Polaris Bank,” Emefiele added.

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