CBN dissolves Skye Bank board

 

The Central Bank of Nigeria (CBN) on Monday sacked the management and Board of Directors of Skye Bank Plc following the bank’s inability to meet minimum capital adequacy ratio requirement.

Mr Godwin Emefiele, CBN Governor disclosed this at a news conference in Lagos while announcing the changes in the personnel and board of the bank.

He added that the decision also affected the two longest serving directors of the bank.

Emefiele said that the CBN had subsequently constituted a new management, led by Mr Muhammad Ahmad, as the Chairman and Mr Tokunbo Abiru as the new Managing Director of the bank.

Emefiele also said that CBN has also appointed two executive directors and five non-executive directors.

The Governor said that the new management would take over the bank till a buyer was gotten for the bank’s assets and liabilities.

“These proactive moves have become unavoidable in view of the persistent failure of Skye Bank Plc to meet minimum thresholds in critical prudential and adequacy ratios, which has culminated in the bank’s permanent presence at the CBN Lending Window.

“In particular, Skye Bank’s liquidity and non-performing loan Ratios have been below and above the required thresholds, respectively, for quite a while.

“To correct the anomalies in the bank, the CBN had several meetings with the management and board of Skye bank as part of our strategy of close engagement whenever a bank’s financial or governance situation poses potential threats to the overall stability of our financial system.

“Despite the expectation of relevant regulators, market watchers, financial analysts and interested stakeholders that Skye Bank should be doing much better than it is right now, we have seen about the opposite in reality, ” Emefiele said.

The CBN had said it would shut out the bank’s board of directors after the July 31 deadline given to the bank to recapitalise had expired.

He added that Skye Bank and some other banks have been threading in troubled region for a while.

According to him, the bank’s capital adequacy ratio is below the benchmark minimum of 10 per cent recommended by the CBN for all deposit money banks in Nigeria.

Emefiele noted that the bank’s liquidity was not also in good threshold as well as its non performing ratio.

The governor said the bank’s market value would be weakened but it did not translate to the bank being in distress.

He, however, assured the bank’s directors, shareholders and depositors of CBN’s assistance to the bank in order to bring it back to normalcy.
Ahmad, the new Chairman of the bank, is a seasoned public sector executive with over 35 years of distinguished experience spanning the public sector and the financial services industry.

He served as the pioneer Director General and Chief Executive Officer of the National Pension Commission.