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CBN revokes Skye bank’s license as ‘Polaris Bank’ to take over

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CBN revokes Skye bank’s license as ‘Polaris Bank’ to take over

The Central Bank of Nigeria (CBN) has revoked the license of Skye Bank plc over the failure of the shareholders of the lender to recapitalise it. However, in order to ensure the safety of depositors of the bank, the CBN in consultation with the Nigeria Deposit Insurance Corporation (NDIC), has established a bridge bank known as Polaris Bank to assume the assets and liabilities of Skye Bank.

CBN Governor, Mr Godwin Emefiele, disclosed this  at a  press briefing in Lagos yesterday that had the MD of the NDIC, Alhaji Umaru Ibrahim, as well as the MD of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru.

Emefiele explained that the strategy is  that like  it did in August 2011 when it acquired some  struggling banks, AMCON will  similarly take over Polaris Bank by injecting N786bn into the bank to recapitalise and then begin the process of searching for investors that will  be willing to buy the bank.

He assured depositors of the defunct skye bank that their deposits are safe and that  they should not panic if they go to their branches on Monday to  discover that it has now  been rebranded as Polaris Bank.

Similarly, the Apex Bank boss said that management of the defunct Skye Bank would be retained  while staff that want to continue working  with the orgnaisation under the new arrangement will be retained but given new job contracts.

He said: “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 seamlesely.”

Emefiele stressed  that although the management of the now defunct Skye bank were able to stabilise the bank,  shareholders of the ailing financial institution  were unable to raise funds to recapitalise it and it continued  to rely on CBN’s life support.

He also disclosed that as a result of this development discussions have been held with the NSE to temporarily suspend the shares of Skye Bank.

It would be recalled  that the CBN had on July 4th 2016, intervend  in Skye bank by announcing the removal of the chairman of the board of Skye Bank Plc, Mr. Tunde Ayeni; other non-executive directors of the board; its managing director, Mr. Timothy Oguntayo; deputy managing director, Mrs. Amaka Onwughalu; and two other executive directors of the bank.

In the place of the chairman, Alhaji M. K. Ahmad was appointed the chairman of the board while Mr. Adetokunbo Abiru was appointed the new managing director of Skye Bank by the CBN.

The CBN said at the time that the move was a proactive step to save the health of the bank from further deteriorating.

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