News that Skye Bank’s licence has been revoked must have reached you by now and if you are customer of Skye bank chances are that you are in a panic.
This Is understandable but it is important to state that aside the name change from Skye to Polaris there is really no cause for alarm.
Thisislagos gives you 8 reasons why you MUST not panic.
1. Why did the CBN revoke the licence? Skye bank has, according to a statement by the CBN governor persistently failed “to meet minimum thresholds in critical prudential and adequacy ratios,”
3. Is Skye bank dying? The CBN governor says no because “the bank’s performance has improved considerably compared to the pre-July 2016 era.”
4. So why the revocation of Skye bank’s licence? The CBN says the action has become imperative in order to “save depositors’ funds and to ensure that the bank continued as a going concern, being a systemically important bank. Part of our intention was also to stem the imminent job losses to staff.”
4. What will the management do to save the bank? The CBN govetnor says the “result of our examinations and forensic audit of the bank has, however, revealed that Skye bank requires urgent recapitalisation as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN. The shareholders of the bank have been unable to recapitalize it.”
5. So what is the first step to saving the bank? According to the CBN “we have decided to establish a bridge bank, Polaris Bank, to assume the assets and liabilities of Skye bank. The strategy is for the Asset Management Company of Nigeria (AMCON) to capitalize the Bridge Bank and begin the process of sourcing investors to buy out AMCON. By this decision, the licence of the defunct Skye Bank is hereby revoked.
6. So what happens to your momey in Skyebank? Relax because the CBN governor has you covered. Your money dey kampe! “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.”
7. What does the CBN governors assurance mean? It means that “all customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by Polaris Bank.”
8. How big is the change and what does the revocation of Skye Bank’s licence mean for management and staff? The CBN governor had this to say: “Given the good performance of the board and management, the CBN shall retain them. In addition, all employees of Skye Bank shall be absorbed by Polaris Bank under a new contract unless any employee decides to opt out.”
So, why revoke the licence and change the name? And if the management has done good since 2016 why do this?
O boy na who we go ask?