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Skye Bank to be called Polaris Bank as CBN revokes its Licence

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Skye Bank would now be taken over by Polaris Bank, the Governor of Central Bank of Nigeria Godwin Emefiele disclosed during a press briefing in Lagos on Friday.

CSkye Bank to be called Polaris Bank as CBN revokes its Licence
CBN Governor, Mr. Godwin Emefiele

The CBN revoked the operating license of Skye Bank PLC with immediate effect, and Polaris Bank bank would take over all the assets and liabilities of the defunct entity.

Emefiele said the decision was necessary as the owners of the bank’s inability 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.

“We have decided to establish a bridge bank, Polaris Bank, to assume the assets and liabilities of Skye Bank.

“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.

The CBN governor also disclosed that the management of the Skype Bank would be retained to continue its operation under a newly licensed Bank.

Emefiele said their retainment is purely based on their performance of the board and management.

He disclosed that the CBN has agreed with the Nigerian Stock Exchange to suspend the shares of the distressed Skye Bank from trading pending when discussions are concluded.

The decision, according to Emefiele, was taken on July 4, 2016 which led to the resignation of the Chairman, all non-executive directors on the board as well as the managing director, deputy managing director and others.

 

 

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