Why Polaris Bank was set up to take over Skye Bank—NDIC

NDIC Managing Director/CEE, Alhaji Umaru Ibrahim

FELIX OLOYEDE

The need to ensure the safety of depositors’ funds propelled the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC) to establish Polaris Bank to succeed just defunct Skye Bank.

NDIC disclosed said this today in a released signed by its Mohammed Ibrahim

Head, Communications and Public Affairs, and he promised that customers of Skye Bank Plc can also continue to transact their businesses with Polaris Bank Limited.

The CBN on Friday announced the revocation of the operating license of Skye Bank due to the inability of its shareholders to recapitalize it, having been living in the life-support of the apex bank since 2016.

NDIC explained that the capitalization Polaris Bank Limited through the injection of N786 billion to return the bank was being done by the Assets Management Corporation of Nigeria (AMCON). This it said would allow the bank return to soundness and profitability to enable its subsequent sale to credible and financially sound third parties acquirers.

“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 asserted.

It assured 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.

“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,” it reiterated.