Polaris Bank has taken over the assets and liabilities of Skye Bank, the Central Bank of Nigeria said today.
Consequently, the CBN has revoked the operating licence of Skye Bank Plc with immediate effect.
Governor of Central Bank, Godwin Emefiele, disclosed this during a press briefing in Lagos on Friday. Emefiele said the decision was reached following the inability of the owners of the bank to shore up the capital of the distressed bank which had earlier received a N350 billion intervention in July 2016.
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. According to Emefiele, the bridge bank, Polaris Bank will be getting a single digit interest long term facility of N786 billion from the Assets Management Corporation of Nigeria (AMCON).
The winding up of the bank came five months after the CBN renewed the mandate of the board of the for an additional two years. Emefiele passed a confidence vote on the board and said it shall continue to run the bank.
The bank’s board comprises Mr Muhammad Ahmad and Mr Tokunbo Abiru, Chairman and Group Managing Director respectively.
The CBN back in April also said the board was given a new two-year term to turn around the operations of the bank.
“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.
“In recognition of the stellar performance of the board, the CBN has renewed the Board’s mandate for an additional two-year term till 30th June, 2020.
“We wish to assure the Bank’s shareholders and stakeholders of the commitment of its board and Management, working with the CBN, to conclude various initiatives to achieve a positive turn around for the bank and deliver value to its stakeholders.”
Also, the Managing Director and Chief Executive of Nigerian Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim said the option of a bridge bank was to ensure that the depositors of the bank are taken care of and deposits are not lost.
Ibrahim said that the bridge bank would also ensure that there would be no job losses as Polaris Bank would retain all staff of the distressed bank under a new contract.
Meanwhile, the share price of Skye bank on Friday gained 4.05 percent at 77 kobo.
The stock is expected to be placed on suspension from Monday in accordance with bridge bank procedures.
