The Nigeria Deposit Insurance Corporation (NDIC) has said that the intervention of the Central Bank of Nigeria (CBN) by revoking the license of Skye Bank Plc was to ensure the safety of depositors’ funds.
NDIC, in a statement issued at the weekend by its Head of Communications and Public Affairs Department, Mr. Mohammed Ibrahim, urged the depositors and customers of the failed bank to continue to transact their businesses with Polaris Bank Ltd.
It explained that the capitalisation through Polaris Bank Ltd, with the injection of N786billion was done by the Assets Management Corporation of Nigeria (AMCON).
NDIC affirmed that the Bridge Bank model would allow Sky 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.
The corporation 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,” Ibrahim stated.
The CBN had on September 21, 2018 announced the revocation of the operating license of Skye Bank due to the inability of its shareholders to recapitalise it since 2016.