The Central Bank of Nigeria has withdrawn the operating licence of Skye Bank. This was announced on Friday, September 21, 2018 by Umaru Ibrahim, chairman of the Nigeria Deposit Insurance Corporation (NDIC).
According to Umaru, the NDIC in collaboration with the Central Bank of Nigeria (CBN) has approved that a bridge bank will be established. Umaru said:
“Consequently, Polaris Bank Limited has been issued operating licence by the CBN and shall commence banking business from today, Friday, 21st September.
“The operating license of Skye Bank has been revoked by the governor of the Central Bank and the NDIC has commenced its liquidation. The capitalisation of Polaris Bank Limited is being done by the Assets Management Corporation of Nigeria through the injection of about N786 billion to return the bank to soundness and profitability so as to enable its subsequent sale to credible and financially sound third-party acquirers”.
While addressing journalists on the development, Godwin Emefiele, CBN governor, said the bridge bank, Polaris Bank, will take on the assets and liabilities of Skye Bank.
The CBN governor said that although the bank’s performance improved after July 2016 when the Assets Management Corporation of Nigeria and the CBN stepped in.
“The result of our examinations and forensic audit of the bank 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.
“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 ensure customers to transact their businesses seamlessly”.