CBN’s Godwin Emefiele announces Polaris Bank’s takeover of Skye Bank
The Central Bank of Nigeria established a bridge bank; Polaris Bank, to take over the assets and liabilities of Skye Bank. The Asset Management Corporation of Nigeria will capitalise the bridge bank and begin the process of sourcing investors.
Mon, 24 Sep 2018 11:57:36 GMT
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AI Generated Summary
- The establishment of Polaris Bank as a bridge bank to address the financial instability of Skybank marks a significant regulatory intervention by the Central Bank of Nigeria.
- The decision to revoke Skybank's license and transfer its assets and liabilities to Polaris Bank was made in consultation with the Nigerian Deposit Insurance Corporation to protect depositors' funds and ensure continued banking services.
- Polaris Bank will be capitalized by the Asset Management Corporation of Nigeria (AMCON) as part of the strategy to source investors for the long-term sustainability of the bridge bank.
The Central Bank of Nigeria has taken a proactive step to address the financial instability of Skybank Nigeria PLC by establishing a bridge bank, Polaris Bank, to assume its assets and liabilities. This decision comes after the CBN's regulatory action on Skybank in July 2016, which resulted in the resignation of key members of the management team due to corporate governance lapses and consistent failure to meet prudential and adequacy ratios. The bank's reliance on liquidity support from the CBN prompted the need for urgent recapitalization, which the shareholders failed to address. In consultation with the Nigerian Deposit Insurance Corporation, CBN Governor Godwin Emefiele announced the establishment of Polaris Bank to safeguard depositors' funds and ensure continued banking services. The bridge bank will be capitalized by the Asset Management Corporation of Nigeria (AMCON) with the aim of attracting investors to buy out AMCON in the future. The revocation of Skybank's license marks a new era for Polaris Bank, which is set to commence operations on Monday, November 24, 2018. Customers can expect seamless transactions and a commitment to maintaining financial stability.
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