" ITREALMS: CBN gives insights on revocation of Skye bank license, Polaris Bank takes over - ITREALMS

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Saturday, September 22, 2018

CBN gives insights on revocation of Skye bank license, Polaris Bank takes over - ITREALMS

The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin I. Emefiele, has given some insights into the revoking of banking license given to Skye Bank plc, just as Polaris Bank makes a debut by automatic take-over of all customers, their accounts and records, reports ITREALMS.

Speaking in Lagos, Friday, Emefiele said in Lagos, revoked the license of the bank which has been on lifeline since 4th July 2016, and assured that the Nigerian banking industry remains safe as well as resilient, just as CBN will continue to live up to its responsibilities of promoting stability in the banking and financial system.

“Indeed, the bank’s performance has improved considerably compared to the pre-July 2016 era,” he declared, stressing that recent examinations and forensic audit of the bank has, revealed that Skye bank requires urgent recapitalization.

“… 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,” Emefiele said.

The CBN, he said, as a responsible and responsive regulator and in consultation with the Nigerian Deposit Insurance Corporation (NDIC), 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,” Emefiele declared.

Assuring 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,” he asserted.

In addition, he informed ITREALMS that all employees of Skye Bank shall be absorbed by Polaris Bank under a new contract unless any employee decides to opt out.

Chuks Egbune/ED, Ops

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