Nigeria’s central bank has revoked the operating licence of Skye Bank. As a result, it created an entity called Polaris to assume all the assets and liabilities of the lender.

Earlier in 2016, the Central Bank of Nigeria (CBN) sacked the top management of Skype Bank for failing to maintain minimum thresholds in critical prudential and adequacy ratios as well as for lapses in corporate governance.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

These measures helped the bank avoid liquidation, save depositors’ funds and prevent job losses.

However, the central bank’s new assessment and forensic audit of the bank found that Skye requires immediate recapitalisation. It is impossible to sustain ‘as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN’.

Polaris

Accordingly, CBN formed Polaris Bank as a bridge bank in consultation with Nigerian Deposit Insurance (NDIC).

Under the arrangement, all customers of the Skye Bank will be automatically transferred to Polaris Bank. They can continue their usual banking operations.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In a statement, CBN governor Godwin Emefiele said: “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 enable customers to transact their businesses seamlessly.”

The government agency Asset Management Company of Nigeria (AMCON) will now capitalise Polaris owning 100% stake in the company.

Subsequently, the process of divesting the bridge bank stake to potential investors will begin.

The CBN also announced that the current board, management, and employees will be retained and will continue their operations.