On Friday, Nigeria’s Central Bank revoked the operating license of one of the country’s largest banks and handing it over to a newly formed institution, Polaris Bank.
Godwin Emefiele, the governor of the CBN announced the withdrawal at a press briefing; saying that the bank could no longer service its shareholders despite receiving a 350 billion naira intervention in July 2016.
The announcement came as a shock to many observers whose concerns may have been assuaged when only this past April, the CBN passed a vote of confidence on the board of the bank and gave it an additional two years to steady the ship of operations.
According to Emefiele,
“The result of our examinations and forensic audit of the bank has, however, revealed that Skye bank requires urgent recapitalization 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.”
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