The Central Bank of Nigeria (CBN) on Friday gave insights into why it revoked the operations licence of Skye Bank Plc and renamed it Polaris Bank.
In a statement signed by the apex bank’s Governor, Godwin Emefiele, indicated that the action was taken to save the bank from going under.
He stated: “As a 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.
“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” Emefiele clarified.
He assured all depositors that their deposits shall remain safe and that normal banking services shall continue in the new bank to enable them transact their businesses seamlessly.
Emefiele, stated further that given the good performance of the board and management, the apex bank shall retain them, adding that all employees of Skye Bank shall be absorbed by Polaris Bank under a new contract unless any employee decides to opt out.
This is even as he assured the general public that the Nigerian banking industry remained safe and resilient and that the CBN would continue to live up to its responsibilities of promoting stability in the banking and financial system