The Nigeria Deposit Insurance Corporation (NDIC) in a resolution statement shortly after CBN withdrew Skye Bank Plc operational license says “in continuation of the Central Bank of Nigeria (CBN) intervention in the distressed Skye Bank Plc, on the 4th July 2016, which was aimed at protecting depositors of that bank, the NDIC, in the exercise of its statutory powers, under the NDIC ACT, 2006, and in consultation with the Central Bank of Nigeria, has organized and incorporated a Bridge Bank known as POLARIS Bank Limited to assume the deposit and other liabilities of the SKYE BANK PLC and acquire its assets.
NDIC said consequently, POLARIS Bank Limited has been issued operating license by the CBN and shall commence banking business from the 21st of September 2018; while the operating license of SYKE has been revoked by the Governor of the Central Bank of Nigeria and the NDIC has commenced the processes for its liquidation.
“The capitalization Polaris Bank Limited (The Bridge Bank) is been done by the Assets Management Corporation of Nigeria (AMCON) through the injection of 786 billion Naira to return the bank to soundness and profitability to enable its subsequent sale to credible and financially sound third parties acquirers.
In a press statement endorsed by Mohammed Kudu Ibrahim, Head, Communications and Public Affairs, Nigeria Deposit Insurance Corporation saying the NDIC carried out the Bridge Bank option to resolve the SKYE Bank Plc in order make certain that its depositors are fully protected as their deposits with Polaris Bank limited remain insured under the NDIC Act and the customers of SKYE Bank Plc. can also continue to transact their businesses with POLARIS Bank Limited thereby ensuring the non-disruption of their banking transactions.
“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 and they will continue their employment with POLARIS Bank Limited under fresh contracts of employment.
“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.
“The NDIC hereby assures depositors and customers of the defunct SKYE Bank PLC that their deposits are safe and hereby encourages them to continue to transact their normal banking business with POLARIS Bank Limited.