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.

Below is full text of press statement:

Gentlemen of the Press
1. You will recall that on 4th July 2016, we took a regulatory action on
Skye bank Nigeria PLC. Specifically, this 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 longestserving
Executive Directors on the Management Team
2. At that time the proactive action was informed by unacceptable
corporate governance lapses as well as the persistent failure of Skye
Bank PLC to meet minimum thresholds in critical prudential and
adequacy ratios, which culminated in the bank’s permanent presence at
the CBN Lending Window.
3. The focus of the action then was to save depositors’ funds and to ensure
that the bank continued as a going concern, being a systemically
important bank. Part of our intention was also 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.
Indeed, the bank’s performance has improved considerably compared to
the pre-July 2016 era.
4. 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 shareholders of the
bank have been unable to recapitalize it.
5. 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.
6. 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.
7. Thus, all customers of Skye Bank shall be automatic customers of the
new bank and their accounts and records duly purchased by Polaris
Bank.
8. Given the good performance of the board and management, the CBN
shall retain them. In addition, all employees of Skye Bank shall be
absorbed by Polaris Bank under a new contract unless any employee
decides to opt out.
9. We wish to assure 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.
Thank you.
Godwin I. Emefiele, CON
Governor, Central Bank of Nigeria

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