The licence of Skye bank has been withdrawn by CBN. National insurance Corporation NDIC has established a bridge bank POLARIS that takes over Skye Bank. However, a bridge bank is a bank authorized to hold the asset and liabilities of another bank, precisely an insolvent bank.
Effective Monday, September 24, all liabilities and assets of Skye Bank have been taken over by the new bridge bank, POLARIS. On July 4 2016, the CBN took a regulatory step on Skye Bank Nigeria PLC, which led to the resignation of all Non-Executive Directors on the Board, the Chairman, the Managing Director, Deputy Managing Director and two longed served Executive Directors on the Management Team.
From CBN report, the bank had witnessed an improvement after the ‘regulatory action’, the result of its forensic audit of the bank disclosed that Skye Bank requires urgent recapitalization and can not continue to live on borrowed times with indefinite liquidity support from the CBN. Hence, the shareholders of the bank have been unable to recapitalize it.
Considering the development the CBN said all depositors’ deposits shall remain safe. Moreover, on Monday, September 24, 2018, normal services will continue to enable customers to transact their businesses normally, as Polaris takes over Skye Bank.