LAGOS, July 18 (Reuters) - Nigeria's central bank has extended guarantees to Skye Bank for another year while it considers the bank's recapitalisation proposal, the mid-tier lender said in a statement.

The central bank shored up the Skye last year with a 100 billion naira ($328 million) capital injection, after sacking its top management for failing to meet minimum capital requirements. It then appointed a new management team.

The bank said it had recovered 60 billion naira in bad loans, closed some branches and sold four subsidiaries to boost capital in the past year.

Skye's problems started after it used short-term funds to buy local lender Mainstreet Bank in 2014 but failed to raise fresh cash. It was in talks with shareholders and investors last year to raise 30 billion naira but suspended the plans when weak oil prices hit capital markets and drove foreign investors away.

"The bank continues to require assistance from central bank and government as it repairs the damage inflicted on the institution in the past and charts a sustainable path forward for the bank," Skye bank said in a statement.

It said it had reached restructuring agreements with many of the chronic bad debtors resulting in improved payments and prospects of future recoveries, it said in a statement.

Skye shares rose more than 3 percent on Tuesday and were up 16 percent this year, after last year's 68 percent plunge.

The bank, which posted a pre-tax loss in 2015, said it had submitted its 2016 accounts for approval.

The central bank designated Skye as one of Nigeria's systemically important banks due to the size of total deposits it holds after it acquired Mainstreet Bank. This means it has to increase its capital ratio to 16 percent, the industry average.

The bank said it has appointed advisers to guide it on a recapitalisation process and that it has identified various options with proposals being considered by the central bank.

hungryboy:
Here is how Nigeria works
Big man goes to his bank friends to take loans he has no intention of paying back
Because of too much bad loans, the bank almost collapses,


Big man begs Government to rescue the bank

And write off his debts to the bank as bad loans
Government then rescues the bank and writes off his debts ,




And big man goes back to that same bank again to collect more loans he plans not to pay back

And the cycle continues


How many poor men dem dey give loan 0,

Adesiji77:


http://af.reuters.com/article/commoditiesNews/idAFL5N1K94XZ

IDEKEALUMONA:
Good one from CBN,they should do everything possible to support the bank, we cannot afford bank collapse with its attendant job loss at this time.

Relatively cheap plots of land at different locations in Trans-Ekulu Enugu for sale.

Call:0-8-1-0-5-8-6-6-4-7-3*

hungryboy:
Here is how Nigeria works
Big man goes to his bank friends to take loans he has no intention of paying back
Because of too much bad loans, the bank almost collapses,


Big man begs Government to rescue the bank

And write off his debts to the bank as bad loans
Government then rescues the bank and writes off his debts ,





And big man goes back to that same bank again to collect more loans he plans not to pay back

And the cycle continues


How many poor men dem dey give loan 0,

NobleBeer:
Abeg how do I transfer money from my Skye account to other bank online. I don forget my mobile pin.

uboma:
@ Adesiji77,

Sorry to derail your thread but why turn a blind eye to the PM I sent to you over 2 months or more ago?