On 4th July 2016, we took 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 two longest-serving Executive Directors on the Management Team.

At that time proactive action was informed unacceptable corporate governance lapses as well the persistent failure of Skye Bank PLC to meet minimum thresholds in critical prudential and adequacy ratios, which culminated in the bank permanent presence at the CBN Lending Window.

The focus of the action then was to save deposited funds and to ensure that the bank continued as a going concern, being a systemically important bank,  Part of our intention was also to steam 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 customers obligations, having curtailed the liquidation hemorrhage and resorted depositor confidence. Indeed, the bank's performance has improved considerably compared to the pre-July 2016 era.

The result of our examinations and forensic audit of the bank has, however, have revealed that the Skye bank requires urgent recapitalization 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.

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.

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.

Thus, all customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by Polaris Bank.

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.

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 stability

Thank you.

 

Godwin I. Emefiele, CON

Governor, Central Bank of Nigeria

Source:https://www.semgist.com/polaris-bank-takes-over-skye-bank-plc/

Polaris na my guy for Tp2..... Congrats Guy

Good development. After all we all know that skye bank is shaking already already. I just they pity there staff. Total lay off is coming soon from them.May God help this country.

j

This is good news then.

At least investors and depositors can have a sigh of relief.

See 17 INVALUABLE PRINCIPLES OF WEALTH CREATION AND CAREER SUCCESSS.

another APC achievement