The Central Bank of Nigeria (CBN), has dissolved the executive board of Skye Bank and has taken over pending when a buyer is found, Central Bank of Nigeria (CBN) Takes Over Skye Bank Management.
Earlier today there were rumours of an imminent dissolution and takeover of Skye Bank by Central Bank of Nigeria.
It has now been officially confirmed that the Central Bank of Nigeria (CBN), has finally dissolved the board of Skye Bank and has taken over, pending when a buyer is found.
The apex bank reportedly took the decision as Skye Bank has been deemed‘unhealthy’and the step is apparently a measure to prevent a total collapse of the financial institution.
The bank is believed to have an estimated non-performing loan portfolio of N700 billion, much of which is due to an overexposure in the oil and gas sector.
All the directors and executives at the bank save who joined the bank last year have been shown the door while the managing director, Timothy Oguntayo, has already dropped his resignation.
The bank would be taken over by CBN and possibly handed over to the Asset Management Company of Nigeria (AMCON) who would buy up the bank’s toxic loan and then make efforts to recover them from the bank’s chronic debtors.
Central Bank of Nigeria, CBN Announces Tokunmbo Abiru As Skye Bank’s New CEO.
The Central Bank of Nigeria, CBN, has announced Tokunmbo Abiru as the new Chief Executive Officer, CEO, of Skye Bank, shortly after Timothy Oguntayo resigned as the bank’s Managing Director, ahead of a pronouncement by the apex bank on Monday over capital adequacy issues.
The CBN governor, Mr. Godwin Emefiele, who revealed the new appointment and confirmed Oguntayo’s resignation, disclosed that Skye Bank’s carries quite a huge bad assets that saw the Non-Performing Loans exceeding the allowed 5 percent threshold.
Earlier reports had it that the CBN has taken over the bank pending when a buyer is found. This was after it dissolved the Board of the financial institution.
Skye Bank was thought to have an estimated none performing loan portfolio of N700 billion, much of which is due to an overexposure in the oil and gas sector.
Addressing a press conference on the latest development on Monday afternoon, Emefiele doused fears that the country’s other banks may be in the same tight liquidity issues, stressing that the apex bank was yet to find any other bank in such dire situation.
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