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CBN, NDIC assure customers of liquidated Skye Bank that their money is safe

The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) has assured all customers of now liquidated Skye Bank that their money in the bank is safe.

The CBN on Friday revoked the operating licence of Skye Bank Plc with immediate effect and announced that Polaris Bank will take over all the assets and liabilities of the defunct entity.

The CBN governor, Godwin Emefiele said the decision had been reached following the inability of the owners of former Skye bank to shore up the capital of the distressed bank which had earlier received a N350 billion intervention in July 2016.

He announced that the Central bank had injected N786 billion into the bank to return it to soundness and profitability.

In a statement released Friday evening, the apex bank says the former Skye Bank which would now be known as Polaris bank will continue banking activities in all branches of the former Skye Bank on Monday September 24th.

“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.”CBN says.

Also speaking, MD/CEO of NDIC, Alhaji Umaru Ibrahim said that AMCON will inject N786 billion facility into Polaris Bank adding that the fund is a long term loan granted at single digit interest rate.

He said: “In continuation of the Central Bank of Nigeria intervention in the distressed Skye Bank Plc which started on the 4th of July 2016 and which was aimed at protecting depositors of that bank, the NDIC in exercise of its statutory powers under the NDIC Act 2006 and in consultation with the central bank has organised and incorporated a bridge bank known as Polaris Bank Limited to assume the deposits and other liabilities of Skye Bank Plc and acquire its assets.

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

“Furthermore, adoption of the bridged bank model for resolution of Skye Bank Plc guarantees that most of the employees of that bank would not lose their jobs and they would continue their employment with Polaris bank limited under a fresh contract of employment.

“The NDIC as a deposit insurer acted to ensure the continuous safety of depositors funds in furtherance of the regulatory authorities resolve to proactively manage the potential threat to financial stability.

“The NDIC hereby assures depositors and customers of the defunked Skye bank that their deposits are safe and hereby encourages all of them to continue to transact their businesses with Polaris bank.”

Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) has sold Polaris Bank to the Asset Management Corporation of Nigeria (AMCON) with the mandate to stabilise the bank as well as return it to profitability for the purpose of selling it to interested Investors. In this regard AMCON will inject N786 billion into Polarise Bank to bring it’s net value to zero.

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