CBN Withdraws Skye Bank’s Licence

Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has announced the withdrawal of the operating license of Skye Bank.

Emefiele, who announced the
decision today, in Lagos said depositors’ funds remain safe.

Polaris Bank has been established to assume ownership of the assets and liabilities of the Bank.

The Nigeria Deposit Insurance Corporation has injected N786bn in the new bank.

In a statement made available to the media,the Apex bank said Skye Bank’s performance has improved considerably compared to the pre-July 2016 era when it took a regulatory action on Skye bank Nigeria PLC.

The action of CBN that time 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 of the then ailing bank

Following the latest action,however,the management of the defunct bank was retained by Polaris Bank for its good performance.

Skye Bank has been on CBN’s lifeline since July 2016 and the apex bank says it can no
longer continue to intervene to keep the balance liquid,hence the need for a Bridge Bank.

“Skye bank requires urgent recapitalisation as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN,” Emefiele said in the statement.

The CBN Governor added that 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,” he declared.

He, however, assured the general public that the Nigerian banking industry remains safe and resilient.

“The CBN will continue to live up to its responsibilities of promoting stability in the banking and financial system,” Emefiele maintained.