Godwin Emefiele CBN Governor
Godwin Emefiele CBN Governor
CBN revokes Skye Bank’s licence, Polaris Bank takes
over
1. You will recall that on 4th July 2016, we took a 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 the two longest-serving Executive Directors on the Management
Team
2. At that time the proactive action was informed by
unacceptable corporate governance lapses as well as the persistent
failure of Skye Bank PLC to meet minimum thresholds in critical
prudential and adequacy ratios, which culminated in the bank’s
permanent presence at the CBN Lending Window.
3. The focus of the action then was to save depositors’ funds
and to ensure that the bank continued as a going concern, being a
systemically important bank. Part of our intention was also to stem
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 customer obligations, having curtailed the
liquidity haemorrhage and restored depositor confidence.
Indeed, the bank’s performance has improved considerably
compared to the pre-July 2016 era.
4. The result of our examinations and forensic audit of the bank
has, however, revealed that Skye bank requires urgent
recapitalisation 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.
5. 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.
6. 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.
7. Thus, all customers of Skye Bank shall be automatic customers
of the new bank and their accounts and records duly purchased by
Polaris Bank.
8. 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.
9. 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.
Godwin I. Emefiele, CON
Governor, Central Bank of Nigeria