By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Check AllCheck All
  • ANDROID
  • WINDOWS
  • GENERAL
  • NEWS
  •   Bookmarks  Bookmarks
Reading: Skye Bank Now Polaris Bank (Bridge Bank) CBN Governor Announced
Share
Notification Show More
Latest News
Skipperbadman Fine Shimmer
GENERAL
Master Surulere
GENERAL
What You Need To Know About A VPN
GENERAL
BADMAN EP Skipper
Skipper Panther Badmanep
Songs
Lock files with USB
Four Apps to Help You Lock Your PC via USB
WINDOWS
Aa
Aa
Check AllCheck All
  • Health Tips
  • ANDROID
  • NEWS
  •  Bookmarks Bookmarks
Search
  • ANDROID
  • WINDOWS
  • GENERAL
  • NEWS
Follow US
Check All > Blog > NEWS > Skye Bank Now Polaris Bank (Bridge Bank) CBN Governor Announced
NEWS

Skye Bank Now Polaris Bank (Bridge Bank) CBN Governor Announced

Daniel Uwana
Last updated: 2018/09/22 at 9:19 AM
Daniel Uwana
Share
5 Min Read
skye-bank-bridge_polaris-bank.jpg
SHARE

CBN Terminates Skye Bank License, Now Polaris Bank

Effective from  Monday, September 24, all operational branches of Skye Bank Plc would now be identified as Polaris Bank Limited (a bridge bank), as the latest takeover of distressed financial institution in the country.

The development, which has been under the direct intervention of the Central Bank of Nigeria (CBN), would still be managed by the Asset Management Corporation of Nigeria (AMCON).

In the takeover, a fresh N786 billion soft and long-term financing at single digit interest rate has been injected to keep the rejuvenated operations ongoing, while the initial N350 billion injected by the apex bank would be withdrawn.

At a joint press briefing by the apex bank and Nigerian Deposit Insurance Corporation (NDIC), the regulators were unanimous in affirming the continued operations of customers’ accounts under Polaris Bank.

CBN governor, Mr. Godwin Emefiele, said the result of examinations and forensic audit of the bank revealed that Skye Bank requires urgent recapitalization and can no longer continue to live on borrowed times with indefinite liquidity support from the CBN, but the shareholders of the bank have been unable to recapitalize it.

On July 4, 2016, CBN took a regulatory action on Skye Bank, leading to the resignation of its 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.

Emefiele said the focus of action then was to save depositors’ funds and ensure the bank continued as a going concern, being a systemically important bank.

It was also to stem the imminent job losses to staff if a liquidation option had been adopted then, adding that the objectives have been fully achieved now and the bank has been able to meet customer obligations, having curtailed the liquidity hemorrhage and restored depositor confidence.

“As a responsible and responsive regulator and in consultation with NDIC, 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 capitalize the bridge bank and begin the process of sourcing investors to buy out AMCON; hence the license of the 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, September 24, 2018 to enable customers to transact their businesses seamlessly.

“Futhermore, all customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by Polaris Bank,” he said.

The apex bank chief said that given the good performance of the board and management, CBN would retain them, as well as all employees of the defunct Skye 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,” he added.

While responding to questions, he said even if AMCON could not find new investors for the bank before its tenure in 2024, the bank would continue to be under CBN’s management, CBN being the major stakeholder in AMCON.

 

Two years after Skye Bank being under “life support” from the liquidity provisions of the apex, it was handed out to investors, just like the former CBN governor, Mallam Sanusi Lamido Sanusi, did in efforts to save the bank from collapse in 2010.

Three banks- Mainstreet Bank (Afribank), Enterprise Bank (Spring Bank) and Keystone Bank (Bank PHB)- were casualties of corporate governance failures, but were revived and sold to new investors years after, with Skye Bank acquiring Mainstreet Bank.

News curled from guardian.ng

You Might Also Like

Smartphone Without Internet Connectivity Made by Samsung

Whats app set to release new features

Electronics Giants Samsung Announces Second Quarter 2017 Results

TAGGED: cbn, poaris bank, skye bank bridge, skyebank

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Daniel Uwana September 22, 2018
Share this Article
Facebook Twitter Copy Link Print
What do you think?
Love0
Sad0
Happy0
Angry0
Wink0
Posted by Daniel Uwana
Follow:
Knowledge is power only when it is shared.
Previous Article Smartphone Without Internet Connectivity Made by Samsung
Next Article Promise-by-Legend_Umaro Download Promise by Legend Umaro
Leave a comment Leave a comment
0 0 votes
Rate This Article
Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe

Recent Updates

Skipperbadman Fine Shimmer
Master Surulere
What You Need To Know About A VPN
BADMAN EP Skipper
Skipper Panther Badmanep

© 2022 checkall.com.ng

wpDiscuz
Join Us!

Subscribe to our newsletter and never miss our updates.

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo