Polaris Bank takes over Skye Bank

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The Central Bank of Nigeria has revoked the operating licence of Skye Bank PLC which applies immediately.

Governor of the Apex Bank Godwin Emefiele, disclosed this during a press briefing in Lagos on Friday.

According to him, Skye Bank would now be taken over by Polaris Bank, which would take over all the assets and liabilities of the defunct entity.

Emefiele said the decision had been reached by the Apex Bank following the inability of the owners of the bank to shore up the capital of the distressed bank which had earlier received a ₦350 billion intervention in July 2016.

Skye Bank requires urgent recapitalization as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN.

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 capitalise the bridge bank and begin the process of sourcing investors to buy out AMCON.

“By this decision, the licence of Skye Bank is hereby revoked,” he said.

Also, the management of the distressed Skye Bank would be retained to continue to manage the newly licenced Polaris Bank.

Emefiele said based on discussion with the Nigerian Stock Exchange, the shares of the distressed Skye Bank would be suspended from trading on the capital market until discussions are concluded.
The new discussion has led 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.

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