CBN renames Skye Bank to Polaris Bank

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The Central Bank said it has renamed Skye Bank to Polaris Bank which signals its take over by the apex bank.

The Central Bank has as a result of this revoked the license of Skye Bank.

The apex bank said it has injected about N786 billion into the bank to recapitalise its operations.

The decision was announced by Umar Ibrahim, chairman of the Nigeria Deposit Insurance Corporation (NDIC), the government agency that insures funds in deposit money banks, made this known to journalists in Lagos later today.

In an address to journalists in Lagos, Godwin Emefiele, CBN governor, said Polaris Bank, will take over the assets and liabilities of Skye Bank.

“Consequently, Polaris Bank Limited has been issued operating license by the CBN and shall commence banking business from today, Friday, 21st September,” Umaru said.

“The operating license of Skye Bank has been revoked by the governor of the Central Bank and the NDIC has commenced its liquidation. The capitalisation of Polaris Bank Limited is being done by the Assets Management Corporation of Nigeria through the injection of about N786 billion to return the bank to soundness and profitability so as to enable its subsequent sale to credible and financially sound third-party acquirers.”

“The result of our examinations and forensic audit of the bank revealed that the Skye Bank requires urgent recapitalisation as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN.”

“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, 24th September 2018, to ensure customers to transact their businesses seamlessly.”

Skye Bank had been going through serious stress since 2016 after the Central Bank of Nigeria fired its chief executive officer as well as its chairman.

The CBN had taken over the operations of the bank by appointing new management and also injecting funds into the bank to prevent from going under. However, Skye Bank has not been up and running despite the effort of the apex bank.

For close to two years, Skye Bank has not released its financial results regularly, a signal that worries many analysts in the financial services industry.