Skye Bank Takeover : 10 Things To Know About Skye Bank Takeover

0

 

Central Bank of Nigeria (CBN) on Friday evening announced the takeover of Skye Bank by Polaris Bank. However, the CBN has assured all Skye Bank’s customer to not panic as all their money with the bank is still intact.
Below are the 10 basic things to know about the takeover and the way it affects you as a Skye Bank customer.

1. Skye bank’s operating licence has been withdrawn.The Central Bank of Nigeria has withdrawn the operation licence of the bank, effective Friday 21st September, 2018.

2. CBN, NDIC have established bridge bank – Polaris
The CBN, in consultation with the Nigerian Deposit Insurance Corporation (NDIC), has established a bridge bank that will survive the bank known as Polaris.

NB: A bridge bank is a bank authorised to hold the asset and liabilities of another bank, specifically an insolvent bank.

3. Polaris takes over Skye Bank
Effective Monday, all asset and liabilities of Skye Bank have been taken over by the new bridge bank, Polaris.

 

4. What is the fate of Skye Bank?
On the 4th of July 2016, the CBN took a regulatory action on Skye Bank Nigeria PLC, leading to the resignation of the 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.

 

5. Why ‘regulatory action’?
The focus of CBN’s regulatory action then was to save depositors’ funds and to ensure that the bank continued as a going concern, being a systemically important bank. Part of the apex bank’s intention was also to stem the imminent job losses to staff if a liquidation option had been adopted.

6. What happened afterwards?
Although CBN said the bank had improved after the ‘regulatory action’, the result of its 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. The shareholders of the bank have been unable to recapitalise it.

7. What’s the new strategy about?
The strategy is for the Asset Management Company of Nigeria (AMCON) to capitalise the bridge bank and begin the process of sourcing investors to buy out AMCON.

8. What happens to depositor’s money?
By the arrangement, the CBN said all depositors’ deposits shall remain safe and that normal banking services shall continue in the new bank on Monday, 24th September, 2018, to enable customers to transact their businesses seamlessly.

9. New bank, new name
By Monday, customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by Polaris Bank.

10. What about management and staff of Skye bank?
According to the CBN, given the good performance of the board and management, the CBN shall retain them. In addition, all employees of Skye Bank shall be absorbed by Polaris Bank under a new contract unless any employee decides to opt out.

You can share this
Previous articleNnedi Okorafor Becomes The First Nigerian to win “Hugo Award”
Next articleOsun Election: Police Arrest Vote-Buying-Selling Suspects
We help you make sense of an increasingly complex information world with a wide range of perspectives and stories that will allow you take an informed decision. We are proud of our African heritage and keep our eyes on the world. As online media, we see digitalization as the foremost opportunity to reach new readers, customers, and African emerging markets. We are independent in our approach. Our philosophy is grounded in the principles of a free society, which Africa is coming to terms with yet not losing the essence of what makes us African, which is our culture. ….showcasing the best part of us! www.etimes.com.ng ======================== info@etimes.com.ng ======================== etimes.nigeria@gmail.com Phone: +234 802 893 1940
SHARE