Skye Bank: CBN’s intervention will ensure depositors’ funds safety, says NDIC

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By Olawunmi Ashafa


Lagos –   The Nigeria Deposit Insurance Corporation (NDIC), said the intervention of the Central Bank of Nigeria (CBN) by revoking the license of Skye Bank licence was to ensure the safety of depositors’ funds.

The corporation said this in a statement by the Head, Communications and Public Affairs Department, NDIC, Mr Mohammed Ibrahim, on Saturday in Lagos.

It also urged depositors and customers of the defunct Skye Bank to continue to transact their businesses with Polaris Bank Ltd.

The News Agency of Nigeria (NAN) reports that the CBN on Sept. 21, announced the revocation of the operating license of Skye Bank due to the inability of its shareholders to recapitalise it since 2016.

NDIC explained that the capitalisation through Polaris Bank Ltd., with the injection of N786 billion was done by the Assets Management Corporation of Nigeria (AMCON).

The corporation said the Bridge Bank model would allow the bank return to soundness and profitability to enable its subsequent sale to credible and financially sound third parties acquirers.

“Furthermore, the adoption of the Bridge Bank model for the resolution SKYE Bank Plc., guarantees that most of the employees of that bank will not lose their jobs.

“They will continue their employment with POLARIS Bank Ltd., under fresh contracts of employment,” NDIC said.

It assured depositors and customers of the defunct Skye Bank that their deposits were safe while encouraging them to continue to transact their normal banking business with POLARIS Bank Ltd.

“The NDIC, as Deposit Insurer, acted to ensure the continued safety of depositor’s funds in furtherance of the regulatory authorities resolve to proactively manage potential threats to financial system stability,” it said.