The Central Bank of Nigeria, CBN has revoked the bankjng licence of Skye Bank. It has transfered the assets and liabilities of Skye Bank to the newly licensed Polaris Bank.
At the same time, the Nigeria Deposit Insurance Corporation has sold Polaris Bank to the Asset Management Corporation of Nigeria AMCON. AMCON has been given the task restoring Polaris profitability, so that it can be sold to investors.
AMCON has announced it will invest N786 billion to bring Polaris’ net value to zero .
CBN chief, Godwin Emefiele said the apex bank decided to revoke Skye Bank’s license because the bank failed to recapitalise following an earlier CBN intervention in July 4th 2016.
For the past few years, Skye Bank has been generally percieved as standing on shaky financial ground. And CBN’s action is seen as an effort to wipe the slate clean.