The operating licence of Skye Bank has been withdrawn, Governor of the Central Bank of Nigeria (CBN), Godwin I. Emefiele, CON, announced on Friday evening in Abuja, the nation’s capital.
He told the media: “You will recall that on 4th July 2016, we took a regulatory action on Skye bank Nigeria PLC. Specifically, this action led to the resignation of the Chairman, all Non-Executive Directors on the Board as well as the Managing Director, Deputy Managing Director, and the two longest-serving Executive Directors on the Management Team
“At that time the proactive action was informed by unacceptable corporate governance lapses as well as the persistent failure of Skye Bank PLC to meet minimum thresholds in critical prudential and adequacy ratios, which culminated in the bank’s permanent presence at the CBN Lending Window.
“The focus of the action then was 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 if a liquidation option had been adopted. These objectives have been fully achieved and the bank has been able to meet customer obligations, having curtailed the liquidity haemorrhage and restored depositor confidence.
“Indeed, the bank’s performance has improved considerably compared to the pre-July 2016 era.
“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 recapitalise it.
“As a responsible and responsive regulator and in consultation with the Nigerian Deposit Insurance Corporation (NDIC), 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 capitalise 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.
“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.
“Thus, all customers of Skye Bank shall be automatic customers of the new bank and their accounts and records duly purchased by Polaris Bank.
“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.
“We wish to assure the general public that the Nigerian banking industry remains safe and resilient and that the CBN will continue to live up to its responsibilities of promoting stability in the banking and financial system.”
Source News Express
The Central Bank of Nigeria (CBN) said it will impose N10,000 ($28) fine per item for every failed NIP transaction caused by any financial institution operating in the country.
It said the implementation of the sanction, which would be effective from October 2, 2018, would be monitored using complaints from senders and/or beneficiaries.
The CBN said the sanction would be placed on any Instant (Inter-Bank) Electronic Funds Transfer (EFT) service provider that fail to reverse such payment within 24 hours.
Instant (Inter-Bank) service provider are any financial institution licensed by CBN to carry on the business of facilitating electronic funds transfer services in partnership with sending and receiving entities.
The CBN, in its Regulation on Instant (Inter-Bank) EFT Services in Nigeria released during the weekend, said the policy was in furtherance to its mandate for the development of electronic payments system in the country.
Also the financial regulator also said delayed application of inward NIP into beneficiary’s accounts beyond four (4) minutes would also attract another N10,000 ($28) fine per item.
The apex bank however advised any stakeholder to the instant EFT service willing to propose an amendment to the regulation to formally forward such proposal to the office of its Director, Baking and Payments System Department for consideration.
Instant (Inter-Bank) EFT also known has instant EFT or instant payment means a system between two distinct entities when delivery from the sending entity to the receiving entity takes place within one (1) minute.