CBN Revokes Skye Bank's Licence

Consequently, the CBN has revoked the operating licence of Skye Bank Plc with immediate effect.

Polaris is a bridge bank set up in concert with NDIC and AMCON and the unveiling was a guarded secret until Emefiele's announcement in Lagos today.

He noted: "The NDIC in exercise of its statutory powers under the NDIC Act 2006 and in consultation with the central bank has organised and incorporated a bridge bank known as Polaris Bank Limited to assume the deposits and other liabilities of Skye Bank Plc and acquire its assets".

"In the two years of the board's mandate, the team has stabilised the institution, entrenched sound corporate governance and risk management practices, and restored depositors' confidence".

The CBN came down on Skye Bank, following the failure of its shareholders to recapitalise the bank, even as the apex Bank has suspended trading in shares of the bank on the Nigeria Stock Exchange (NSE) indefinitely.

The stock is expected to be placed on suspension from Monday in accordance with bridge bank procedures.

He said, "On the 4th July 2016, we took a regulatory action on Skye bank Nigeria PLC".

Nzekwe said that it could have been devastating and bad if depositors of the troubled bank lost all their money.

He added that although the bank's performance improved afterwards, the bank needs urgent recapitalization.

The Nigeria Deposit Insurance Corporation (NDIC) on Saturday, September 22 disclosed that employees of the defunct Skye Bank Plc would be offered new contract terms under the management of Polaris Bank.

The development came after CBN's consultations with the NDIC to establish of Polaris Bank, and accorsing to Emefiele, the NDIC also sold Polaris Bank to the Asset Management Company of Nigeria (AMCON) so as to capitalise and stabilise the bank and return it to the path of profitability for the objective of selling it to interested investors.

It said the "NDIC carried out the Bridge Bank option to resolve the Skye Bank Plc.in order make certain that its depositors are fully protected as their deposits with Polaris Bank limited remain insured under the NDIC Act and the customers of Skye Bank Plc. can also continue to transact their businesses with Polaris Bank Limited thereby ensuring the non-disruption of their banking transactions" it said.