Over 6,000 jobs and N949 billion of depositors’ funds have been saved by the Central Bank of Nigeria’s (CBN) decision to revoke Skye Bank’s operating license and setting up a bridge bank. The was disclosed by the Managing Director and Chief Executive of Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim.
While speaking at the ongoing International Trade Fair in Lagos, Ibrahim confirmed that the Nigerian financial services regulator saved over 6,000 jobs and over N949.60 billion in customers’ deposits as at June 2018.
Explaining that the bridge bank is a temporary bank created to operate a failed bank until a buyer can be found, Ibrahim who was represented by the NDIC’s Head of Corporate Communications, Muhammed Kudu, pointed out that the resolution option is less disruptive to rendition of bank services, unlike outright liquidation or depositors’ payoff.
“THE STAFF ARE RETAINED IN THE BRIDGE BANK AND WITH THIS EXPERT ARRANGEMENT, POLARIS BANK LIMITED WAS ABLE TO CONTINUE BANKING OPERATIONS IN THE 277 BRANCHES OF THE BANK, OVER 6,000 JOBS WERE SAVED AND DEPOSITORS HAVE UNHINDERED ACCESS TO DEPOSITS IN EXCESS OF N949.60 BILLION AS AT JUNE 2018.” – IBRAHIM
How Skye Bank’s operating license was withdrawn
As we exclusively reported, Nigeria’s apex bank on September 21st announced an immediate revocation of Skye Bank Plc’s operating license. The bank’s share capital had run into negative territory due to bad loan deals. It was also in urgent need of recapitalisation which its shareholders could not achieve.
As part of this development, therefore, the bank’s name was changed to Polaris Bank Limited; a bridge bank which is to oversee the liquidated entity until Asset Management Corporation of Nigeria (AMCON) finds a new buyer.