CBN Revokes Skye Bank Plc Licence But Retains Staff – CBN establishes a bridge bank, Polaris Bank, to assume the assets and liabilities of Skye Bank. This followed the announcement of CBN by its governor, Godwin Emefiele, today 21st September, 2018 during during a press briefing in Lagos.
Therefore, The Central Bank of Nigeria has revoked the operating licence of Skye Bank Plc with immediate effect. The CBN governor announced that Skye Bank would now be taken over by Polaris Bank, which would take over all the assets and liabilities of the defunct entity.
CBN Revokes Skye Bank Plc Licence But Retains Staff
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Skye Bank Needed Recapitalization:
Skye Banl Plc could not recapitalise as demanded by CBN, but has been operating on even with capital intervention from CBN since 2016.
Emefiele said the decision had been reached following the inability of the owners of the bank to shore up the capital of the distressed bank which had earlier received a N350 billion intervention in July 2016.
“Skye Bank requires urgent recapitalization as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN.
Polaris Bank Takes Over Skye Bank Operations:
“We have decided to establish a bridge bank, Polaris Bank, to assume the assets and liabilities of Skye Bank” said he.
“The strategy is for AMCON to capitalise the bridge bank and begin the process of sourcing investors to buy out AMCON.
“By this decision, the licence of Skye Bank is hereby revoked,” he said.
CBN Revokes Skye Bank Plc Licence But Retains Staff
Skye Bank Management Team & Staff Retained:
Also, the management of the distressed Skye Bank would be retained to continue to manage the newly licenced Polaris Bank.
According to the CBN governor, given the good performance of the board and management, the CBN shall retain them.
However, Emefiele said based on discussion with the Nigerian Stock Exchange, the shares of the distressed Skye Bank would be suspended from trading on the capital market until discussions are concluded.
CBN Revokes Skye Bank Plc Licence But Retains Staff
Skye Bank Distressed Story:
The CBN Governor said the bank has been exercising regulatory actions on Skye Bank Nigeria Plc since July 4, 2016. He explained that this exercise 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.
Source: Punch Newspaper
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CBN Revokes Skye Bank Plc Licence But Retains Staff
Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.
